Ethena Price Caught in Wedge Pattern Sets Renewed Recovery Beyond $1
Highlights
- The ENA price will extend its current correction trend until the wedge pattern is intact.
- A bullish breakout from the wedge will accelerate the bullish momentum to challenge the $1 psychological barrier.
- The intraday trading volume in Ethena is $487.2 Million, indicating a 17% gain.
Amid the post-halving volatility in Bitcoin, the altcoin market has showcased a consolidating trend with a slight bearish tone. ENA, the token of decentralized finance (DeFi) protocol Ethena, is reflecting this downswing by resonating within two downsloping trendlines of falling wedge patterns. However, this pattern is known for indicating the maturity of a downtrend indicating a potential reversal in ENA price.
Also Read: Crypto Price Prediction 30/4: BTC Slips to $61K, DOGE and ADA Down 6%
Is Ethena Price Ready to Hit $1?
The ENA token, introduced on April 2nd at an initial price of $0.64, quickly captured the interest of the cryptocurrency community. This led to a remarkable increase in its value by 136%, reaching a peak of $1.523 by April 11th, marking its all-time high.
However, the coin price witnessed a notable downswing from the aforementioned high to $0.8 within three weeks to register a 48% loss. An analysis of the daily chart shows the formation of a falling wedge pattern has prevented a major correction and maintained the asset sustainability above $0.775.
If the pattern holds true, the Ethena coin price showed a breach of the overhead trendline signaling an early sign of trend reversal.
Moreover, the Coinbase International Exchange, a significant player in the global cryptocurrency market, has announced supporting several new perpetual futures, including Ethena (ENA-PERP). This move is scheduled to commence on or after 9:30 AM UTC on May 2, 2024, marking a significant expansion in the trading options available for Ethena alongside other tokens like AEVO and Etherfi.
This listing could boost investor confidence in Ethena, as perpetual futures provide a means to hedge against price volatility or gain exposure to ENA without owning the token directly.
The positive development will bolster the wedge pattern breakout to chase potential targets of $1.2 and $1.52.
Technical Indicator
- Exponential Moving Average: A negative crossover state between the 5, 13, and 26 EMA of daily indicates the correction trend is still in action.
- Relative Strength Index: A notable bullish divergence in the 4-hour chart RSI indicates increasing buying activity among market participants.
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