Ethena [ENA] has experienced a notable increase in popularity, with an impressive 18.05% daily upsurge, drawing the attention of both traders and investors. Currently trading at $1.13, ENA has successfully crossed the significant $1.10 mark, a crucial resistance level that previously restricted its price movement.
This development has sparked conversations regarding the sustainability of ENA’s current positive momentum and its potential to reach the $1.53 threshold, driven by robust technical and market factors.
Technical outlook: Formation of Cup and Handle pattern
ENA has emerged from a classic cup-and-handle pattern, a bullish technical setup indicating the possibility of further uptrends. This breakout above the $1.10 level has instilled optimism, hinting at a projected price increase towards the $1.53 resistance level.
This pattern reflects a period of accumulation followed by a decisive breakout, which traders often view as a signal of continued upward progress.
ENA’s technical signals: Building momentum
The technical indicators affirm ENA’s strong performance. The MACD indicator depicts a bullish crossover, with the MACD line at 0.1290 surpassing the signal line at 0.1170. The histogram bars are expanding, indicating a strengthening momentum.
Furthermore, the Average Directional Index (ADX) registers at 47.86, indicating a robust and clear trend. These measures imply that ENA’s current rally might have the vigor to push towards higher price levels.
Decline in network growth
Despite the positive price action, ENA’s network growth has notably dropped to 182 from the previous day’s 444. This data suggests a decrease in new entrants into the ecosystem, which could present challenges in maintaining long-term momentum.
Nevertheless, the active involvement of existing market participants continues to propel the ongoing surge.
DAA divergence supporting the rally
Despite the decrease in network growth, ENA’s price-DAA divergence remains favorable. Currently standing at 23.86%, this reading indicates that although fresh network activity has slowed down, active addresses are interacting more intensely.
This scenario underscores the dedication of existing market players, bolstering the argument for a sustained rally in the immediate future.
Is $1.53 within reach for ENA?
Backed by a solid technical setup, with MACD at 0.1290, ADX at 47.86, and a positive price-DAA divergence, ENA is strongly positioned to challenge the $1.53 resistance.
While the decline in network growth raises some concerns, the ongoing rally seems viable for the short term due to the strong active participation and bullish momentum.