The high supply trendline prolongs the downfall in Ethena (ENA). Will the failure of the bullish trend lead to a major crash?
With the crypto market taking a quick bearish turn mid-week, the downside risk in altcoins is increasing. Ethena revisits crucial support as buyers struggle to generate a breakout momentum.
Will this bullish failure result in a slip to $0.20, or is Ethena ready for a breakout rally this November? Let’s find out.
Ethena Back At $0.35
Maintaining a declining trend in the daily chart, ENA price action shows a constant bullish failure to surpass a long-coming resistance trend line. Despite the recent bounce-back from $0.19 to $0.45, accounting for a 131.90% surge, Ethena failed to cross above the said resistance.
The bullish rally extended from September 6 to October 16. However, the failure to overcome the overhead resistance has led to a downward trend, closing near the 23.60% Fibonacci level at $0.3263.
Currently, Ethena is trading at $0.3535, following an intraday drop of 2.51%, which has formed a bearish candle with higher price rejection.
Notably, the daily RSI line shows no bullish divergence to suggest a potential reversal. As bearish momentum builds, Ethena struggles to break below the 20-day EMA and is now testing the dynamic support of the 50-day EMA.
Will Ethena Hold $0.32?
As Ethena continues to form lower highs, the risk at the 23.60% Fibonacci level increases. Furthermore, the broader market correction warns of a breakdown below the $0.30 psychological mark.
A breakdown below the 23.60% Fibonacci level at $0.3236 will likely test the previous low formation near $0.2634. Meanwhile, the critical support at $0.20 remains a potential downfall target.
On a more optimistic note, despite these short-term challenges, rising anticipation for a bullish November suggests a possible breakout above the resistance trendline. Should Ethena break this barrier, potential targets include the 50% and 78.60% Fibonacci levels at $0.5448 and $0.9579, respectively.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
