Ethena [ENA] has recently displayed signs of a potential turnaround as the TD Sequential indicator has generated several buy signals on the 4-hour timeframe, signaling a potential shift in the market sentiment.
At the current moment, ENA is trading at $0.4882, indicating a decrease of 10.81% within the last 24 hours.
While the price has seen a notable decline, technical analysis suggests the possibility of a comeback.
Price Movement and Crucial Resistance Levels: Is Ethena Ready for a Breakout?
ENA has been facing pressure in terms of price action, having broken through several support levels recently. Presently, the token is testing a crucial support level around $0.4847, a significant price level.
If this support holds, ENA could reverse its downward momentum and aim for key resistance levels at $0.5126 and $0.5657.
However, in case ENA fails to maintain this support, it might either consolidate further or witness extended downside movement.
Surge in Wallet Addresses: What’s Fueling the Demand?
The number of addresses holding ENA has surged significantly. In the past week, new addresses holding ENA have risen by 238.94%, indicating a growing interest in the token.
Active addresses have also gone up by 97.84%, suggesting that investors prefer holding their positions rather than engaging in frequent trading. This surge in addresses might offer long-term backing for ENA at lower price levels.
It implies that investor trust is increasing despite the ongoing downward trend.
Transaction Data: Gaining Insights into Market Activity
An examination of the transaction statistics indicates a notable change in transaction volume across different price ranges.
The majority of transactions are occurring within the $0.00 to $1k range, indicating active involvement from smaller investors.
Interestingly, the transaction volume for higher amounts has significantly dropped, hinting at a lack of substantial interest from larger investors at the current price point.
This scenario could imply that retail traders are supporting ENA’s price, while institutional participation remains somewhat limited at present.
How Do ENA Investors Stand?
Analysis of the In/Out of the Money chart indicates that most addresses hold profitable positions, with 69.66% of holders currently in profit.
Nevertheless, 10.18% of investors are yet to see profits, suggesting notable resistance levels ahead. Hence, when the coin’s price nears the range of $0.5126 to $0.5657, selling pressure might emerge as these investors aim to break even.
Will ENA Rebound or Extend Its Downtrend?
ENA holds the potential for a rebound if it can maintain support at current levels and surpass key resistance barriers.
The positive spike in new addresses, combined with the recent buy signals from the TD Sequential indicator, hints at a potential upward movement. Therefore, ENA might witness a turnaround towards $0.5126 and higher if the momentum strengthens.
However, traders are advised to proceed with caution, as a failure to sustain support could lead to further downside risks.