The Ethena [ENA] token experienced a sharp rally to a local high of $0.12 on March 4th, fueled by high trading volume and increased Open Interest signaling short-term bullishness. However, the rally was rejected, and sellers have since regained control over the past 48 hours, with the price falling 15% from that peak. Analysts suggest the long-term bearish trend remains dominant, indicating a deeper price drawdown may be imminent.
The Ethena [ENA] token rallied to a local high of $0.12 on Wednesday, March 4th. An earlier report had detailed the swift price surge and a commensurate increase in Open Interest, which signaled short-term bullish momentum.
That rally was rejected, and over the past 48 hours, the sellers regained control of the market. At the time of writing, ENA was trading 15% below the $0.12 local high water mark.
The longer-term price structure for ENA has been bearish since it topped out around $0.8 last August. Prices fell below the $0.21 support level in mid-January and have since suffered a 50% drawdown in just five weeks.
The Directional Movement Index has shown a strong downtrend on the weekly chart since October. The MFI and A/D indicators have also been falling, highlighting the absolute control bears have enjoyed in recent months.
On the daily chart, a bullish divergence with the momentum indicator led to the price bounce toward $0.12. The Fibonacci retracement levels showed that the 78.6% level at $0.123 was not tested before the rejection.
Technical indicators on this timeframe agreed that the market was firmly bearish. The next target for ENA is now considered the $0.085 extension level to the south.
