Ethena’s price slips 15% from its weekly high – Deeper losses ahead?
Ethena [ENA] rallied to a neighborhood excessive of $0.12 on Wednesday, 04 March. An AMBCrypto report had detailed the swift surge in costs and the commensurate enhance in Open Curiosity that signaled short-term bullishness.
The excessive buying and selling quantity on the day was additionally famous, however the longer-term bearish construction could be anticipated to prevail. Over the previous 48 hours, the sellers regained management of the market too.
On the time of writing, ENA was 15% under the $0.12 native excessive water mark. Primarily based on the proof at hand, it will appear {that a} deeper drawdown was probably.
Ethena consumers can’t catch a break!
Supply: ENA/USDT on TradingView
Any respite the consumers acquired over the previous 8 months has lasted solely every week or two, at finest. Since topping out at round $0.8, Ethena costs have been falling since August. They fell under the $0.21 help in mid-January. At press time, the worth was simply above $0.1.
This represented a 50% drawdown in 5 weeks. It was a warning to altcoin traders that shedding main help ranges can result in fast losses.
The Directional Motion Index has proven a robust downtrend on the weekly chart since October. The MFI has been falling decrease, with the A/D making new lows too. Collectively, they highlighted absolutely the management bears have loved in current months.
What subsequent for ENA merchants?
Supply: ENA/USDT on TradingView
A bullish divergence with the momentum indicator led to a worth bounce to $0.12. The aforementioned report had highlighted the longer-term development and the liquidation cluster at $0.12 as a short-term worth magnet.
The Fibonacci ranges confirmed that the 78.6% degree at $0.123 was not examined earlier than the rejection. This can be one other signal that sellers have been in management and the market was firmly bearish. The technical indicators on this timeframe agreed as effectively.
The subsequent goal for ENA is the $0.085 extension degree to the south.
Closing Abstract
- Ethena’s long-term worth motion was bearish, and the short-term bounce reached its goal and confronted rejection.
- A drop under $0.1 could also be imminent, with a fall of seven%-15% probably over the subsequent week too.
Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion.
