Ethena (ENA) Jumps 13%, Is a Return to $1 Just Around the Corner?

• Ethena is trading at $0.50 after gaining over 13%.
• ENA’s trading volume has increased by more than 33%.

With the active downturn in the crypto market, the majority of the assets have been bleeding red, setting the bearish tone. The largest cryptocurrencies, like Bitcoin (BTC) and Ethereum (ETH), have chosen to trade on the downside. Notably, Ethena (ENA) has registered a price surge of over 13.22% in the last 24 hours.

Ethena opened the day trading at a bottom level of $0.4453, and after testing the key resistance ranges between $0.4458 and $0.5095, the asset rose to a high of $0.51. Further upside may result in more gains. As per CMC data, as of this writing, Ethena trades at around the $0.5062 zone.

In addition, the market cap of ENA is settled at $3.3 billion, with its daily trading volume up by over 33.99%, reaching $1.11 billion. According to the Coinglass data, during this period, the market has experienced a liquidation of $2.56 million worth of Ethena in the last 24 hours.

On the other hand, Arthur Hayes, co-founder of BitMEX, has purchased 2.16 million ENA worth $1.03 million. The acquisition was made through Binance, Galaxy Digital, and Flowdesk. With this purchase, Hayes now holds a total of 7.76 million ENA valued at $3.73 million.

Will ENA Bounce Back or Break Down Further?

Ethena’s Moving Average Convergence Divergence (MACD) line is found below the signal line, indicating a brief bearish momentum. The asset’s recent price movement is likely weakening. Also, it has the potential for a continued downtrend. In addition, the Chaikin Money Flow (CMF) indicator value sitting at 0.21 suggests a strong buying pressure, and the money is flowing into the asset. This is a bullish sign in the ENA market.

Moreover, the current market sentiment of the asset is in the moderately bullish zone as the daily Relative Strength Index (RSI) is found at 57.01. There is more room for an upward move before hitting potential resistance. Ethena’s Bull Bear Power (BBP) reading of 0.0116 is mildly positive, which signals that the bulls are currently stronger than the bears.

The four-hour trading pattern of Ethena displays a negative outlook. The asset might plunge and retest the crucial support at the $0.5056 level. A steady downside correction could send the price toward $0.5049. On the upside, ENA bulls might help to find the nearest resistance at $0.5067. Upon breaking this level, the price could see a bullish correction, triggering the price to move above the $0.5074 mark.