Altcoins
Here’s why Ethena is the best Altcoin to buy in this dip!
While the market as a whole failed to maintain Wednesday’s momentum, altcoins are struggling to reach critical support levels. The Ethena token shows a similar trend with a failed bullish reversal and a deep pullback phase in action.
However, as the ENA price decline approaches a crucial support level, secondary traders anticipate a bullish return. Will Ethena pull off a bullish reversal next week for a bullish finish through 2024? Learn more in our ENA course forecast.
Death Cross, a bearish seal for Ethena
Ethena’s downtrend becomes critical as the market cap drops from $1.33 billion to $1 billion in almost 60 days. Additionally, the price of the ENA token has failed to maintain the psychological $1 mark with a dominant bearish trend over the past few weeks.
Additionally, the underlying attempt at a bullish reversal fails with an inverted head and shoulders pattern. Despite breaking the $0.96 neckline, the sudden increase in supply to $1 resulted in a rapid decline.
The bearish reversal sees the altcoin fall to the $0.65 support and is currently trading at $0.70. Furthermore, Ethena is seeing an intraday rise of 1.48% and provides an attractive buying opportunity for secondary traders.
Technical indicators:
MACD indicator: The bullish continuation of the MACD and the signal lines in the 4H chart reinforce a reversal opportunity.
EMA: The 50 and 200 EMA in the 4H chart maintain a downtrend with a deadly crossover, reflecting huge bearish influence on Ethena.
Will ENA price recover $1?
With a fall to the $0.65 mark and crucial support for Ethena, the chances of a bullish reversal are high. However, the death cross in the 4H chart and the broader market slowdown warn of a fall.
If the bullish reversal accelerates, which is a likely scenario, the uptrend could reach the $0.84 mark. Conversely, a decline below $0.65 will increase supply pressure, resulting in a decline to $0.50.