What will happen to the Ethena price rebound after breaking $1?

Ethena Price: A relative newcomer to the DeFi space, Ethena is gaining attention for its innovative approach to yield generation. After successfully airdropping 750 million ENA tokens and listing them on major cryptocurrency exchanges, the altcoin has made incredible gains amid the current correction trend in the cryptocurrency market. Will the momentum continue to break the $1.5 barrier?

Also Read: Ethena (ENA): Market Maker Amber Group Withdraws 5 Million ENA from Binance

Is the ENA price rise sustainable?

Ethena introduces a pioneering approach to digital finance through its Ethereum-based synthetic dollar protocol. On April 2, the protocol launched its native cryptocurrency by airdropping 750 million ENA tokens, which were distributed to users holding the USDe synthetic dollar.

Ignoring the current market correction, this altcoin has witnessed massive inflows over the past two days thanks to its listing on major cryptocurrency exchanges, including Binance. ENA price is up 122% from its all-time low of $0.527 and is trading at $1.18, according to Coinmarketcap. The market capitalization of Ethena coin is $1.63 billion, up 61.75% from yesterday.

Analyzing the hourly chart, we see that ENA price is resonating in a rising wedge pattern. In theory, this chart pattern suggests that a bullish rally has matured and strengthens the asset for a notable correction. However, with high buying momentum, Ethena coin broke the overhead trend line of the recent pattern, indicating the possibility of a higher rally from buyers.

With the asset in price discovery mode, coin holders can expect supply pressure at psychological levels such as $1.25 and $1.5.

However, with the broader market trending towards a correction, Ethena coin is unlikely to sustain this momentum until more positive news supports it. Therefore, ENA price may show a downward trend from time to time only to regain strength soon.

Also Read: Binance Lists Ethena (ENA) Across Multiple Products. Here’s how to claim your tokens:

technical indicators

• Exponential Moving Average: The fast-moving 20 EMA slope can provide decent support to ENA price during occasional pullbacks.
• Relative Strength Index: An hourly RSI slope above 75% indicates a high momentum rally underway.

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Sahil is a dedicated full-time trader with over 3 years of experience in the financial markets. With a strong understanding of technical analysis, he closely follows the daily price movements of top assets and indices. Driven by a fascination with financial products, Sahil has enthusiastically embraced the emerging cryptocurrency space and continues to explore opportunities driven by his passion for trading.

The content presented may include the personal opinions of the author and may vary depending on market conditions. Do your market research before investing in cryptocurrency. Neither the author nor the publication accepts any liability for your personal financial losses.