Ethena (ENA) price has decreased by 18% in the last 24 hours, pushing the market capitalization below $3 billion. Nonetheless, ENA remains among the top 50 largest cryptocurrencies by market capitalization.
Indicators such as RSI and CMF show that market sentiment is negative, but they also suggest the potential for recovery if conditions improve. Traders are closely monitoring important support levels at $0.89 and resistance at $1.01 to predict ENA's next move.
Ethena's RSI has hit a 5-month low.
The Relative Strength Index (RSI) of Ethena has dropped to 26.4, marking the lowest level since August 2024. RSI is a momentum indicator that assesses the speed and strength of price movements on a scale from 0 to 100.
Values above 70 indicate overbought conditions, posing a risk of price correction, while values below 30 signal oversold conditions and potential price recovery. The sharp decline from 79.9 on January 3 to the current level reflects a significant shift in market sentiment, with selling pressure prevailing over the past five days.
Relative Strength Index (RSI) of Ethena | Source: TradingView
With a reading of 26.4, ENA's RSI is currently in the oversold territory, suggesting that the recent sell-off may have been exaggerated. This could pave the way for a price recovery if buying pressure returns to the market.
However, the bearish momentum pushing the RSI down also reflects weak investor confidence, suggesting that ENA's price may continue to face pressure in the short term.
ENA's CMF is recovering from a low.
Chaikin Money Flow (CMF) index of Ethena is currently at -0.19, showing a slight recovery from yesterday's low of -0.25. CMF is a technical indicator that measures the flow of money into or out of an asset based on price and trading volume over a specific period.
A positive CMF indicates net buying pressure, signaling potential bullish momentum, while a negative CMF reflects net selling pressure, suggesting negative sentiment. The recent drop from a peak of 0.32 on January 3 to the current negative value indicates a significant shift in market sentiment, coinciding with ENA's price decline from above $1.20.
Chaikin Money Flow (CMF) index of Ethena | Source: TradingView
With a reading of -0.19, ENA's CMF indicates that selling pressure still dominates, but there are signs of easing as the indicator recovers from a recent low. This slight improvement could signal that outflows are slowing, offering a small hope for price stability in Ethena.
However, with the CMF in the negative zone, negative sentiment still prevails, and prices may continue to decline if the indicator does not approach or exceed the 0 level, signaling a return of buying pressure.
ENA price forecast: $0.75 could be the next target?
The exponential moving averages (EMA) of ENA are currently establishing a bearish trend, with the short-term EMA lines sloping downwards. If this trend continues, a 'death cross' signal is likely to appear. This is a technical signal when the short-term EMA crosses down the long-term EMA, often indicating continued bearish momentum.
This bearish signal may increase selling pressure, pushing ENA's price to test the support level at $0.89. If this level is broken, the correction could be deeper, with the next target at $0.75, corresponding to a decline of 21.8% from the current price.
ENA/USDT 4-hour chart | Source: TradingView
However, as suggested by the RSI and CMF indicators, the potential for recovery from the current level still exists. If ENA's price regains upward momentum, it may challenge the resistance level at $1.01, and if surpassed, the price could advance to $1.12.
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