Ethena Price Caught in Wedge Pattern Sees Extended Correction to $0.86

The cryptocurrency market has experienced significant volatility in April attributed to the upcoming Bitcoin halving later this month. In tandem with Bitcoin consolidation, the majority of major cryptocurrencies witnessed notable corrections, but not Ethena. This new entrant in the DeFi space is riding a sustainable growth recently hitting a new high of $1.45. But how will this rally continue amid market correction?

Also Read: Binance Extends Support For PEPE, JUP, ENA, WIF

Is ENA Price Heading to $2?

Ethena (ENA) is a crypto project developed by Ethena Labs, focusing on creating a synthetic dollar protocol, USDe, on the Ethereum blockchain. The project aims to provide a stable, scalable alternative to traditional money without relying on traditional banking systems.

An analysis of the 4-hour chart shows the rising ENA price strictly resonating between the two converging trendlines of the wedge pattern. This chart setup is commonly referred to as a sign of an uptrend reaching maturity as a narrowing range indicates a weakening of bullish momentum.

By the press time, the Ethena coin trades at $1.4 and holds a market cap of $1.997 Billion. If the wedge pattern holds true, the ENA price will breach the lower trendline at $1.3. A successful breakdown coupled with a broader market sell-off could plunge the asset to a low of $0.86.

Also Read: 3 Reasons Likely To Trigger Bitcoin Price Pre-Halving Plunge To $60,000

On-Chain Alert Major $ENA Stake Precedes Price Surge

In a notable on-chain activity captured by Spot On Chain, a crypto whale withdrew 6 million ENA from Binance and staked them, positioning themselves as a top staker in the ENA contract. This occurred despite the market downturn, with ENA seeing a 14% increase, possibly influenced by 114 million ENA being staked recently.

A whale withdrew 6 million $ENA (~ $8.58 million) from Binance and staked all of them just 1 hour ago.

This action instantly catapults him into one of the top stakers within the $ENA contract.

Notably, this individual had previously staked 8.96M $USDe a month ago.

Despite the… pic.twitter.com/S4mD1rxZXi

— Spot On Chain (@spotonchain) April 10, 2024

Moreover, the bearish thesis will be invalidated if the ENA price breaks the overhead trendline, providing buyers with suitable support to reach new heights.

Technical Indicator 

• Pivot Levels: With the ENA coin in price discovery mode, the traditional pivot level indicates the overhead supply region at $1.57, followed by $1.975
• Relative Strength Index: The 4-hour RSI slope at 63% reflects that buyers are leading a high-momentum rally.