As the crypto market turns bearish, the Ethena (ENA) price drops to a new 7-day low. Will this correction result in a massive crash to $0.63?
With a market cap of $2.619 billion, Ethena ENA $0.90 24h volatility: 20.5% Market cap: $2.65 B Vol. 24h: $1.23 B is still the 50th biggest cryptocurrency, boasting a positive return of 68% over the past 30 days. However, the ongoing correction concludes the long-coming bull run.
Selling pressure has put crucial support levels at risk, and ENA price has cracked below $1. Ethena price analysis paints a short-term extension in the pullback phase as the market remains volatile.
With a massive drop of 28.44% this week, ENA price is in a free fall. Over the past five days, the Ethena price action has formed consecutive bearish candles. The downfall breaks at the $1 psychological level and the 20-day EMA line.
The bearish turnaround, starting with the new swing high of $1.32, has pushed the ENA price down to $0.90. Ethena is currently trading at $0.8943.
With the free fall at play, the daily RSI line has slipped below the halfway level from the overbought zone. This reflects a 50% cut in the buying pressure and warns of an extended correction.
In the weekly chart, the massive correction comes after six weeks of a bull run and undermines last week’s recovery run with a bearish weekly candle. Furthermore, the downfall undermines the rounding bottom breakout run.
Despite the massive correction, the whales’ balance maintains a positive approach. Over the past 30 days, balance holdings in USD between $100,000 and $1M have increased by 108.67%.
Furthermore, whales adding more than $10M have increased by 89.85%. However, a substantial drop of 20% is witnessed among whales, adding $1M to $10M
Meanwhile, the retail segment remains significantly optimistic. Holdings between $100 and $1,000 have risen by 52%, $1,000 to $10,000 have surged by 67%, and $10,000 to $100,000 have increased by 105.54%. Hence, retail and high-net investments continue to grow while the middle-class segment witnesses fluctuations.
As the balance by holding grows, the addresses witness massive fluctuations. Wallets holding between 1M and 10M ENA tokens have increased by 27%. Similarly, 9.52% of wallets have added between 10M and 100M ENA holdings.
In addition, holdings between 100M and 1B ENA tokens have increased by 16%. However, a cautionary drop of 14.29% has been observed in wallets holding 1B to 10B ENA tokens.
Despite the minor fluctuations and the bearish price trend, retail and whale support for Ethena remains substantial. Hence, the prevailing uptrend is likely to continue once the broader market stabilizes, propagating a bullish trend in Ethena.
Supporting the on-chain findings, a whale has been on an accumulating spree of Ethena. Over the past three days, a newly created wallet has withdrawn 13.65 million ENA tokens from Binance. The withdrawal is worth $13.42 million and reflects the growing support of whales for Ethena.
Whales are accumulating $ENA.
Over the past 3 days, this newly created wallet has withdrawn 13.65M $ENA($13.42M) from #Binance.https://t.co/yVzvPAUlYG pic.twitter.com/warF4CflA8
— Lookonchain (@lookonchain) December 20, 2024
In conclusion, the substantial support of whales amid the broader market pullback reflects stronger community support for Ethena. Meanwhile, the whales actively capture the price dips, increasing the chances of a bullish reversal. Hence, the ENA price will likely bounce back by the end of the year.
In the short term, as the volatility continues, the ENA price is likely to test the 50-day or 200-day EMA at $0.79 and $0.63. With a massive downside of 26%, the altcoin will likely provide multiple dip opportunities to accumulate.
On a bullish front, a bounce back from the 50 EMA line will likely retest the $1.00 psychological mark.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.
