As the Defi sector gains traction this week, ENA turned more bullish as it doubled its price in a month. Despite witnessing a rejection today, it still leads the top gainers spot with an 8% surge in the last 24 hours.
Two months ago, ENA’s price reached an extremely oversold condition after declining seriously for months. This led to a serious setback but the token managed to pick up after locating support at $0.195.
Initiating its first major buy in six months, the price increased for four weeks and peaked at $0.42 late last month. Unfortunately, the buying halted and the price rolled back. This led to a bearish start this month but the bulls defended well and pushed back at around $0.2 last week.
Holding that level as support, the price increased steadily until it reached $0.46 yesterday, testing a rising trendline acting as dynamic resistance since August. Today marks a second attempt to break this line but the bulls fail due to a rejection.
Looking at the daily chart, ENA has retraced slightly to where it now trades at $0.43. While the key $0.4 level serves as a support for the market, losing it may bring a little drawdown before picking up again.
And if the mentioned level continues to hold as support, the crypto will likely resume buying at full speed. That should lead to a major breakout of this rising trendline. Still, it is considered bullish on the daily chart.
ENA’s Key Level To Watch
While there’s still room for an increase in the long term, the price must break above the trendline to test the $0.517 resistance. On the way up, there’s a minor resistance at $0.6 before tapping the $0.724 level.
Inversely, the price may slip below $0.4 to test the $0.282 level, now considered as support. Right below this level lies $2. If a break occurs, last month’s low would be the next level to watch.
Key Resistance Levels: $0.517, $0.6, $724
Key Support Levels: $0.4, $0.282, $0.2
- Spot Price: $0.435
- Trend: Bullish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency.
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Source: https://nulltx.com/ethena-price-analysis-prediction-october-16-ena-faces-key-resistance-line-after-surging-48-weekly-possible-pullback/