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The Ethena price plunged over 5% in the last 24 hours to trade at $1.20 at press time.
The Ethena Price Breaks Support
4-hour chart for ENA/USDT (Source: TradingView)
In a recent examination of the Ethena price on the 4-hour chart, notable fluctuations have been observed that suggest a critical analysis for potential investors and traders. The crypto has shown a volatile pattern, with closing prices oscillating between $1.293 and $1.251 in the latest sessions.
The 9 Exponential Moving Average (EMA) has seen a gradual increase, indicating a bullish signal for short-term movements. Similarly, the 20 EMA has risen from $1.1511 to $1.1982, supporting the bullish trend on a slightly longer scale. This alignment of short and long-term EMAs suggests that the asset is gaining upward momentum, albeit at a cautious pace.
However, the Moving Average Convergence Divergence (MACD) presents a more nuanced picture. The MACD line has hovered around 0.072 to 0.074, with the signal line closely following, indicating a potential for either growth or retraction in the near term. The small but increasing histogram values, culminating in a latest reading of 0.000113, suggest that while the momentum is bullish, it might be losing some steam.
USDe is the fastest growing USD denominated asset in the history of crypto pic.twitter.com/xgiRJjf96t — G | Ethena (@leptokurtic_) April 8, 2024
The Relative Strength Index (RSI) readings have steadily decreased from 69.67 to 59.09, moving from a nearly overbought territory to a more neutral stance. This suggests that the buying pressure is reducing, possibly giving way to a consolidation phase or a minor pullback before any significant upward movement.
Levels to Watch
Considering the critical levels of $1.259 and $1.114 with a support level at $0.879, the Ethena price seems to be hovering above a significant support zone. If the price maintains above $1.259, it could signal continued bullish momentum with potential targets near the recent highs. Conversely, a break below this level could see the pair testing the next support at $1.114, and potentially $0.879 in a more significant downturn.
For traders looking at entry and exit points, a sustained move above $1.259 could offer a bullish entry point, with tight stop losses just below this level to manage risk. On the flip side, a short position could be considered if the price fails to maintain above $1.259, targeting lower supports while keeping an eye on the $1.114 level for potential exits or reversals.
In summary, ENA presents a cautiously optimistic scenario for bulls in the short term, supported by EMA and MACD indicators, albeit with signs of potential consolidation or pullback as suggested by RSI and volume trends. As always, traders should employ a balanced approach, incorporating these technical insights with broader market analysis and individual risk tolerance.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Ecoinimist is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
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