Altcoin
Here’s why Ethena is the best altcoin to buy in this dip!
With the broader market failing to sustain Wednesday’s surge in momentum, altcoins are struggling at critical support levels. Ethena token shows a similar trend with a failed bullish reversal and a deep pullback phase in action.
However, as the ENA price decline approaches a crucial support level, collateral traders anticipate a bullish return. Can Ethena manage a bullish reversal next week for a bullish end to 2024? Find out more in our ENA price forecast.
Cross of Death, a bearish seal for Ethena
Ethena’s bearish trend is becoming critical as the market cap drops from $1.33 billion to $1 billion in almost 60 days. Furthermore, the ENA token price has failed to sustain the psychological threshold of $1 with a dominant bearish trend over the past few weeks.
Furthermore, the underlying attempt at a bullish reversal fails with an inverted head and shoulders pattern. Despite the breakout of the $0.96 neckline, the sudden increase in supply to the $1 level caused a rapid collapse.
The bearish reversal drops the altcoin to the $0.65 support and is currently trading at $0.70. Furthermore, Ethena witnesses an intraday rise of 1.48% and offers a dip buying opportunity for collateral traders.
Technical indicators:
MACD indicator: Bullish continuation in the MACD and signal lines in the 4-hour chart strengthen a reversal opportunity.
EMA: The 50 and 200 EMA on the 4-hour chart maintain a descending trend with a death cross, reflecting a huge bearish influence on Ethena.
Will ENA Price Recover $1?
With a collapse to the $0.65 mark and crucial support for Ethena, the chances of a bullish reversal are high. However, the death cross on the 4-hour chart and the broader market slowdown warn of a collapse.
If the bullish reversal gains momentum, a likely scenario, the uptrend could reach the $0.84 mark. Conversely, a decline below $0.65 will increase supply pressure, resulting in a drop to $0.50.