- Ethena did not yet possess a bullish swing structure on the 1-day chart.
- The swift gains came alongside a BTC surge beyond $100k, casting doubts on organic demand.
Ethena [ENA] has been trading within a descending channel since March. The swift Bitcoin [BTC] surge past $100k saw ENA post 27% gains for the day at press time, and the trading session has not yet closed.
The trading volume also picked up on the day. The heightened volume and sizeable gains meant that the channel highs were the next price target. It was possible that Ethena would see a short-term price dip.
ENA: Enough momentum for a breakout?
Source: ENA/USDT on TradingView
The technical indicators were leaning in favor of the bulls on the 1-day timeframe. The OBV saw a minor dip over the past two weeks as Ethena fell from $0.365 to $0.256.
The MFI also slumped following the losses of the past week.
Yet, the gains within the past 24 hours were accompanied by an uptick on the OBV and the MFI.
If this can be sustained over a period of a week or two, ENA would have realistic chances of breaking out beyond the channel highs. At press time, the resistance region to watch was the $0.355-$0.365 area.
Source: ENA/USDT on TradingView
Zooming in on the 1-hour chart, a bearish divergence between the price and the MFI indicator was seen. This showed that the short-term upward momentum has overextended the market and that a correction was likely to occur.
Such a correction could see an ENA price dip to the $0.318 or the $0.313 levels, which were support levels in the lower timeframes.
The liquidation heatmap data of the past month showed a cluster of liquidity that remained untested overhead.
A particularly dense cluster of liquidation levels was at $0.343, marking it as a price target in the coming days.
The $0.36 level was also a noticeable magnetic zone and a feasible price target. Traders already in long positions can consider taking profits around the $0.36 region, since it lined up well with the channel highs of ENA.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
