Crypto analysts at CryptoBusy have cautioned traders to keep a close watch on Ethena (ENA) as the cryptocurrency exhibits a clear downtrend pattern. In a tweet, @CryptoBusy warned, “Watch out on this $ENA key level support! Waiting a confirmation on both ends will avoid you from getting rekt.”
What you'll learn 👉
The Bearish Descending Triangle Pattern
A descending triangle is taking shape on the ENA price chart, formed by a flat support line and a downward sloping resistance line. This bearish technical pattern typically indicates a continuation of the current downtrend. However, the analysts note it could potentially lead to a bullish reversal if the price manages to break out above the resistance.
According to the chart analysis, a key horizontal support level marked by a red line has been repeatedly tested by the ENA price. While the price has briefly dipped below this line on a few occasions, suggesting false breakouts, the support has managed to hold up so far. Nonetheless, CryptoBusy cautions that the repeated testing could signify a weakening of this critical support level.
Two Potential Price Trajectories
The chart provided by CryptoBusy shows two possible future price movements for ENA. A red arrow pointing downwards indicates the bearish scenario, where the price could continue its descent, breaking down below the current support level. Conversely, a green upward arrow represents a potential bullish breakout, should the price manage to surpass the descending resistance line.
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Show more +ENA’s Price Actions
According to the latest price data from the cryptocurrency tracking website CoinGecko, the price of Ethena (ENA) is currently trading at $0.8871. This represents a significant 5.69% price decline over the past 24 hours, reflecting the overall bearish sentiment surrounding the cryptocurrency.
CryptoBusy, hence, advises traders to “set alerts on the support and trendline resistance” levels. Moreover, they stress the importance of waiting for confirmation on both the support and resistance levels before entering any trades. Acting prematurely without confirmation could lead to heavy losses, as cautioned by their warning to “avoid getting rekt.”
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