Ethena (ENA) Price Slips 10% Following Resistance Rejection at Recent High
ENA price made an interaction with the rising wedge resistance and got rejected. What will happen next?
Key Takeaways
- The corrective structure ended near $0.20, initiating a new impulsive wave.
- The price is approaching $0.80, signaling the end of the current five-wave sequence.
- Mild overbought conditions suggest potential for short-term consolidation or correction.
The Ethena (ENA) price analysis reveals a completed WXYXZ corrective structure near $0.20 in early September, paving the way for a strong impulsive wave sequence.
The price has been progressing within a five-wave formation, currently nearing the completion of Wave (v).
Recent interactions with key resistance levels suggest the uptrend may soon face a correction, but the potential for further advances remains, with targets approaching $0.80.
ENA Price Analysis
The ENA 4-hour chart shows a complex WXYXZ corrective structure concluded near $0.20 on Sept. 6, followed by a new impulsive wave sequence.
After breaking out from the descending triangle, the price began forming a five-wave impulse, currently nearing the completion of wave (v).
Wave (iii) peaked around $0.67, followed by a shallow Wave (iv) correction to $0.50 on Nov. 21.
Since then, a new uptrend has begun, likely forming its ending wave with the price interacting with the ascending resistance on Nov. 27 and getting rejected.
This could be an early sign that the pattern is completed, but it remains possible that it will advance further.
The RSI shows mild overbought conditions, indicating potential for a short-term correction or consolidation before further continuation.
If Wave (v) exceeds resistance levels, the next significant target lies near $0.80, while a retracement would likely test previous support levels at $0.40 or $0.26.
Key Observations
- WXYXZ Correction Completed: The price decreased from a prolonged corrective pattern near $0.26.
- Impulsive Wave Structure: The current five-wave impulse nears Wave (v) completion.
- RSI Indications: Overbought conditions suggest potential short-term consolidation or a pullback.
ENA Price Prediction
The hourly chart shows a well-structured impulsive wave formation progressing within wave (v) of a higher-degree sequence.
Wave (iii) peaked around $0.76, followed by a corrective Wave (iv), which is now likely in development.
If this is true and the price remains trading above $0.65, we can anticipate one more high to $0.81.
On the other hand, a sharper decline will invalidate this bullish possibility and potentially provide an early signal of the looming correction.
The RSI indicated slightly overbought conditions, suggesting wave (v) may soon approach exhaustion. A correction will follow wave (v) completion, with its optimal target being at the 0.618 Fib retracement at $0.41.
Key Levels to Watch
Support Levels
- $0.66 (0.236 Fibonacci): Immediate support for Wave (iv) retracement.
- $0.56 (0.382 Fibonacci): Next support in case of further pullback.
- $0.41 (0.618 Fibonacci): Strong base support for a deeper correction.
Resistance Levels
- $0.81 (Wave (v) completion): Key resistance and potential short-term peak.
- $0.85 (possible overextension): Long-term resistance if bullish momentum accelerates.
The price will likely test $0.81 in the near term, but a failure to sustain bullish momentum could lead to a deeper retracement toward $0.65 or lower.
A confirmed breakout above $0.81 would signal further bullish potential.
