Date: Sun, February 16, 2025 | 07:44 AM GMT
The cryptocurrency market was under pressure after the November rally, with major altcoins facing steep corrections. However, the market is showing signs of recovery this week as Bitcoin dominance has dropped by 1.26% over the past seven days, creating room for altcoins to regain strength.
Meanwhile, despite this, Ethena (ENA) is still struggling to find upside momentum as it remains down by 11% in the last seven days while experiencing a significant 57% correction in the last 60 days.
Source: Coinmarketcap Amid these decline, the asset has reached key support level, forming a potential V-bottom pattern—a historically bullish reversal structure that could signal a strong comeback.
V-Bottom Setup
On the daily chart, ENA initially saw an impressive rally of over 300% from November to mid-December, surging from $0.32 to a high of $1.33 on December 16. Since then, it has faced a heavy correction, dropping by almost 70%, which took its price to a bottom support zone at $0.4017.
Ethena (ENA) Daily Chart/Coinsprobe (Source: Tradingview) Meanwhile, ENA appears to be forming a V-bottom pattern, a V-shaped formation that appears when price momentum switches from aggressive selling to aggressive buying.
As of now, ENA is trading at $0.4495, and if this pattern plays out, confirmation could occur if it breaks above the 200 MA resistance. A successful breakout could lead ENA to a rapid recovery, likely targeting the previous $1.33 high, representing a 192% increase from the current price.
The MACD indicator is showing early signs of bullish momentum. The MACD line is attempting a crossover above the signal line, which could indicate a shift towards buying pressure. If confirmed, this could support the V-bottom pattern and further upside movement.
Final Thoughts
With ENA reaching a key support zone and forming a V-bottom reversal pattern, it could be poised for a significant recovery if the 200 MA resistance is broken. However, failure to hold current levels could result in further downside pressure. Traders should watch for volume confirmation and technical signals before making any trading decisions.
As always, investors should remain cautious and conduct their own research before making financial moves.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before investing in cryptocurrencies.
