Date: Fri, February 7, 2025 | 10:18 AM GMT
In the cryptocurrency market, major altcoins have struggled to maintain their momentum since the November rally. The sharp rise in BTC dominance, combined with factors such as the Deepseek launch and tariff-related uncertainty linked to Donald Trump, has added further bearish pressure.
Ethena (ENA) has not been spared from this downturn, experiencing a 46% correction over the past 60 days. However, its current technical setup suggests that it may be gearing up for a recovery.
Source: Coinmarketcap
Cup and Handle Pattern: A Bullish Signal?
On the daily chart, ENA is forming a classic cup and handle pattern, a well-known bullish continuation pattern that often precedes a strong breakout.
After facing rejection at $1.07 on December 2, ENA retraced to its critical support zone of $0.47. Despite the correction, it has held strong above $0.52, forming the handle portion of the pattern. If ENA follows through with this structure, it could rally back toward the neckline around at $1.29, which represents a potential 141% upside from its current levels.
Ethena (ENA) Daily Chart/Coinsprobe (Source: Tradingview)
Key Resistance Levels and Indicators
The 200-day Simple Moving Average (SMA) is currently acting as an intermediate resistance. A break above this level would confirm the bullish recovery rally.
The MACD (Moving Average Convergence Divergence) indicator is showing signs of bearish momentum weakening. The potential for a bullish crossover could strengthen buying pressure and signal a shift in momentum.
Will Ethena (ENA) Break Out?
ENA is at a crucial point. If it breaks above the 200 SMA and clears the neckline resistance, it could see a strong continuation towards the all time high level of $1.52. However, broader market sentiment, particularly Bitcoin and Ethereum’s price action, will play a key role in determining whether ENA can sustain this recovery.
However, confirmation above key resistance levels is necessary before a full recovery rally can be confirmed.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.
