Ethena (ENA) has been on the rise since July 8. After reclaiming the short-term resistance zone of $0.08, the altcoin made a 14.11% move from the day’s low of $0.072 to current market prices of $0.082. However, the token has been declining since its attempt to break above $0.10 in early June. Despite recent gains, the downward trend has not been broken yet.
The Robinhood Earn feature, which launched on July 1, was also a big plus for Ethena. The network observed in a post on X that Ethena represents more than 70% of asset allocation from Robinhood user deposits. Ethena transferred $50 million to the USDG vault at Morpho, selected by Steakhouse Financial. This entry increased Robinhood Chain’s TVL by 160%.
Countering this positive news for the synthetic dollar protocol was a Whale Alerts post on X showing the transfer of 1.231 billion ENA worth $94 million between two unknown wallets.
Using ENA price action to identify upcoming trends
For an altcoin that is down 94% from its all-time high, the weekly chart is expected to be bearish. OBV has been recording new lows for over two years. ENA stories It fell below the $0.19-0.20 support zone at the beginning of the year. This support level has been defended since September 2024.
Other momentum indicators were neutral or bearish during this time frame, with OBV signaling an overall bearish trend. However, a lower time frame resistance zone was breached.
Should ENA investors wait before selling?
The 1-day swing structure showed a bearish trend in early June (white). The continued price rise in the 0.08 region requires OBV to continue rising to signal steady buying pressure.
Such a bounce is technically possible, but broader market sentiment would need to support ENA’s uptrend if it were to occur. Even then, the $0.105 round number and the 50% retracement level will be a significant resistance zone to overcome.
A bounce to $0.105-$0.125 can be sold with conviction. At current prices, neither buying in anticipation of a bounce nor selling ahead of a price drop has a good enough risk-reward ratio for swing traders.
Final Summary
- Along with the uptick on Robinhood Earn news, the $94 million ENA token offered mixed signals for market participants.
- Long-term price action has been bearish and the key resistance zone between $0.105-$0.125 is an area to watch out for.
