- ENA crypto has less than 10% of its total supply in circulation.
- Ethena crypto has declined below the strong support zone, highlighting the dominance of bears.
Ethena, launched on Binance Launchpool, operates on Ethereum, offering a synthetic dollar protocol for users to earn tokens through farming.
It provides stablecoin solutions and savings tools within DeFi, including the Internet Bond, combining profits from Liquid Staking Tokens and derivatives markets. Ethena was created by Portugal-based startup Ethena Labs, led by Guy Young.
Following the last 24 hours from the press time, the market cap of the Ethena crypto has advanced by 5.1%. Despite this, looking at the bigger picture, it can be seen that the price of crypto is trading in a small range.
Although the price of the ENA crypto has broken below crucial support, a decline in the trading volume of the crypto can be seen. It could be a reason for the price trading in a range-bound zone.
The price volatility has been high, as per Coincodex, which results in 17.39%. Moreover, the liquidity of the crypto was also very high, resulting in 35.76%.
The recent 24-hour period has witnessed a decrease in trading volume activity within the Ethena cryptocurrency. This decline suggests a waning interest among traders in the crypto asset.
Ethena is the 72nd most prominent cryptocurrency in the global cryptocurrency market. The ranking of the crypto under the top 100 shows that Ethena is a strong cryptocurrency with a market cap of $1.132 Billion.
Where Is The Derivatives Wind Taking The Ethena Crypto Price?
The last few days show higher long liquidations in the ENA crypto. It denotes that the bears are taking over the price, and a higher profit booking has been made in the last few days.
If we look at the liquidation of the last 24 hours from the press time, a more significant proportion of long liquidation can be seen, followed by a long/short ratio of 0.9916.
Also, the long liquidation recorded in the last 24 hours values $874.60K against the short liquidations of $461.97K for the crypto.
What Is Disappointing For ENA Crypto In Technical Charts?
By taking rejection from a dynamic trendline, the price of the ENA crypto consistently declined to lower levels. This led the ENA crypto price to break below crucial support.
The following behavior of the crypto price shows the bear’s dominance and bearish sentiment. Since the decline in the price below the crucial support level, the crypto has witnessed a decrease in its trading volume and is currently trading in a small range.
The crypto price is consolidated in a small range, and further breakdown in the crypto price is below the consolidation range. It can further lead to a substantial decline in the trading crypto price.
ENA/USD Chart by TradingViewAMANDA_TMP
Contractions in the Bollinger band of the 4H chart of the ENA crypto can be seen, which shows the advance in the crypto volatility. Furthermore, the momentum of the crypto looks negative.
The 20 and 50-day EMAs are trading in a bearish cross, and the price of the crypto is sliding to a lower level with the decline in the EMA metrics.
The MACD and the signal line are trading in negative territory, and the following metrics of the MACD are trading in a bearish cross. This further supports the weakness in the price of the crypto.
The RSI further supports a decline in the crypto momentum as the RSI is sustaining below the 50 level. Moreover, the press time value of the RSI is 44.53, and it overlaps the 14-day SMA.
Summary
The recent trend in Ethena crypto indicated a decline in trading volume and a bearish sentiment despite a slight increase in market cap. With higher long liquidations and a bearish technical outlook, the price broke crucial support, leading to consolidation and potential further decline.
Technical Levels:
- Support Levels: $0.520 and $0.70
- Resistance Levels: $1.210 and $1.520
Disclaimer
This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.