Ethena (ENA) has lost 11% in the past week after gaining 63% in the past 30 days. However, ENA is still seen as a strong asset with a market cap of $3 billion. Technical indicators suggest that the price has the potential to continue higher in the short term. The RSI suggests that it has room to rise further before reaching overbought levels, while ENA’s price could rally by 66%. However, there is a potential risk if the price breaks out of weak support areas.
Technical indicators suggest that ETHENA’s price may exhibit a directionless movement in the short term, and therefore critical support and resistance levels should be monitored. In particular, the RSI is currently at 47.3, indicating that the market is in balance, with neither buyers nor sellers maintaining significant control. This suggests that the price is in a pause phase, with overbought or oversold conditions not yet established.
When the RSI is at 47.3, Ethena’s price action lacks much directional strength. In the short term, this equilibrium suggests a sideways trend, but momentum could change if the RSI breaks above or below the thresholds.
In addition, the ENA's Directional Movement Index (DMI) indicates a weak trend. A drop in ADX to 10.7 indicates that there is no strong directional movement and the market is experiencing a period of indecision or stagnation. Although there is a small difference between the positive and negative indicators of the DMI, the strength of the trend is weak overall.
Looking at the price forecast, Ethena is currently trading between the $1.07 resistance and $0.94 support levels. A break above $1.07 could take ENA’s price to $1.14, with a subsequent rally to $1.22. This scenario offers an upside potential of 18%. However, if the $0.94 support is broken, the price could drop to $0.75, implying a downside risk of 27%.
As a result, ENA’s price action is likely to remain weakly directionless in the short term. A break above $1.07 could support the rally, while a drop below $0.94 could increase selling pressure. These levels are critical for investors and should be watched closely.