What's Behind the ENA Rally? | Credit: Hameem Sarwar
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Key Takeaways
Ethena (ENA) has increased by 270% since the start of June.
ENA is nearing a nearly 500-day descending resistance trend line.
Can ENA finally break out and reach a new all-time high price?
Ethena (ENA) has been one of the best-performing cryptos since the beginning of June.
Last week’s ENA surge was aided by a collaboration with Pendle, which caused the USDe supply to skyrocket to new highs.
The ENA price is approaching a 500-day resistance trend line and aiming to break out.
ENA Token Surges
The weekly time frame technical analysis shows that ENA has created six bullish candlesticks in the eight weeks since the start of June.
The rally has been almost completely parabolic, and even the bearish candlesticks are tiny compared to the bullish ones.
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One essential characteristic of the price action is that ENA moved above the $0.55 horizontal area last week (green icon), confirming it as support (green icon).
With a bullish engulfing candlestick, ENA is nearing the long-term descending resistance trend line at $1.10, close to the final horizontal resistance at $1.30.
While both levels will likely be difficult to surpass on the first attempt, Ethena’s price would reach a new all-time high if it does, likely beginning a parabolic rally.
Momentum indicators are backing the move, too: The Relative Strength Index (RSI) is nearly above 70, while the Moving Average Convergence/Divergence (MACD) is positive.
The ENA price will likely reach the $1.10-$1.30 resistance and break out.
Short-Term ENA Analysis
While the long-term analysis is bullish, the short-term chart shows weakness.
Firstly, the wave count suggests that ENA is in the fifth and final wave of its upward movement, after which a significant correction is likely for the token.
Secondly, the RSI and MACD have generated bearish divergences, though the RSI shows this more clearly.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
