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The high supply trendline prolongs the downfall in Ethena (ENA). Will the failure of the bullish trend lead to a major crash?
With the crypto market taking a quick bearish turn mid-week, the downside risk in altcoins is increasing. Ethena revisits crucial support as buyers struggle to generate a breakout momentum.
Will this bullish failure result in a slip to $0.20, or is Ethena ready for a breakout rally this November? Let’s find out.
Ethena Back At $0.35
Maintaining a declining trend in the daily chart, ENA price action shows a constant bullish failure to surpass a long-coming resistance trend line. Despite the recent bounce-back from $0.19 to $0.45, accounting for a 131.90% surge, Ethena failed to cross above the said resistance.
The bullish rally extended from September 6 to October 16. However, the failure to overcome the overhead resistance has led to a downward trend, closing near the 23.60% Fibonacci level at $0.3263.
Currently, Ethena is trading at $0.3535, following an intraday drop of 2.51%, which has formed a bearish candle with higher price rejection.
Notably, the daily RSI line shows no bullish divergence to suggest a potential reversal. As bearish momentum builds, Ethena struggles to break below the 20-day EMA and is now testing the dynamic support of the 50-day EMA.
Will Ethena Hold $0.32?
As Ethena continues to form lower highs, the risk at the 23.60% Fibonacci level increases. Furthermore, the broader market correction warns of a breakdown below the $0.30 psychological mark.
A breakdown below the 23.60% Fibonacci level at $0.3236 will likely test the previous low formation near $0.2634. Meanwhile, the critical support at $0.20 remains a potential downfall target.
On a more optimistic note, despite these short-term challenges, rising anticipation for a bullish November suggests a possible breakout above the resistance trendline. Should Ethena break this barrier, potential targets include the 50% and 78.60% Fibonacci levels at $0.5448 and $0.9579, respectively.