Ethena (ENA) is facing renewed pressure in the crypto market, even as its trading activity climbs. Over the past 24 hours, ENA slipped 2.71%, extending a broader weekly loss of 16.36%.
At the time of writing, the token is trading at $0.7052 with a 24-hour volume of $781.63 million, marking a sharp 46.41% rise in activity. Its market capitalization currently stands at $4.85 billion, reflecting continued investor participation despite the pullback.
Also Read: Ethena (ENA) Bulls Eye $1.00: Can It Overcome Market Volatility?
The price chart reveals a double top pattern around the $0.8724 level, a classic reversal formation that often marks strong resistance. Ethena attempted to push past this level twice but failed, underscoring the presence of heavy selling pressure.
According to crypto analyst Altcoin Sherpa, ENA’s current price of $0.7039 is just below the 0.236 Fibonacci retracement at $0.7190 and the 25-day EMA at $0.7182, with both levels acting as key hurdles. If buyers reclaim this zone, the next upside target sits at $0.8724. Support rests near $0.6515 at the 55-day EMA and $0.6241 at the 0.382 Fibonacci retracement. These zones remain critical for determining whether ENA stabilizes or moves into deeper correction territory.
Even though the overall EMA trend remains positive with long EMAs sloping upwards, the short term is leaning towards the bearish side, given the inability of the price to maintain above the 25-day EMA. A drop below the 55-day EMA could trigger steeper pullbacks to $0.5474 or $0.4707 to match the 0.5 and 0.618 Fibonacci retracement levels.
Open interest in ENA has risen to $1.61 billion and is higher by 0.64%. This is a signal of leveraged position accumulation and higher speculation in the derivatives market. The rise in OI, alongside higher trading volume, is an indication that traders are active even when the token is in price frailty.
However, the OI-weighted funding rate is -0.0046%, meaning short positions dominate and are paying longs to maintain trades. The imbalance signifies the bearish sentiment by leveraged traders, but positions the possible short squeeze.
As buying pressure surges and the price accelerates higher, shorts will be squeezed to cover in a rush and force steep positive acceleration. This pulling and tugging make ENA’s short-term outlook very volatile, with risk and reward on the table.
Also Read: Ethena (ENA) Holds Above Support As Buyers Eye Breakout Toward $1
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