Ethena [ENA] has been moving upward since the 8th of July. The altcoin has made a 14.11% move from the $0.072 low on that day to the current market prices of $0.082 after reclaiming the short-term resistance zone at $0.08. However, the token has been falling lower since the attempted rally beyond $0.10 in early June. Despite the recent gains, the downtrend has yet to be broken.
The Robinhood Earn feature, launched on the 1st of July, has also been a big plus for Ethena. The network observed in a post on X that Ethena represented over 70% of the asset allocation from Robinhood user deposits. Ethena seeded $50 million into a USDG vault on Morpho, chosen by Steakhouse Financial. This inflow pushed the Robinhood Chain’s TVL up by 160%.
Contrasted against this positive news for the synthetic dollar protocol was the Whale Alerts post on X that showed a 1.231 billion ENA transfer, worth $94 million, between two unknown wallets.
Using ENA price action to sort out the upcoming trends
For an altcoin that is down 94% from its all-time high, the weekly chart is expected to be bearish. The OBV has been making new lows for over two years. The ENA price fell below the $0.19-$0.20 support zone at the start of the year. This support level had been defended since September 2024.
Other momentum indicators were neutral or bearish on this timeframe, and the OBV signaled overall bearish dominance. However, a lower timeframe resistance zone has been breached.
Should ENA traders wait before selling?
The 1-day swing structure broke bearishly at the start of June (white). The ongoing price bounce from the 0.08 zone requires the OBV to continue going higher to signal steady buying pressure.
Such a bounce is technically possible, but the broader market sentiment needs to support ENA’s bullish shift, if it comes. Even then, the $0.105 round number and 50% retracement level would be a key resistance zone to overcome.
A bounce to $0.105-$0.125 could be sold with conviction. At current prices, neither buying in expectation of a bounce nor selling ahead of a price slide had a good enough risk-to-reward for swing traders.
Final Summary
- A $94 million ENA token worth alongside the bullishness around the Robinhood Earn news presented mixed signals for market participants.
- The long-term price action was bearish, and the $0.105-$0.125 pivotal resistance zone was one to watch.
