Ethena Price Prediction: $ENA Breaks Out of 4-Week Correction to Target $1.2

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As a seasoned crypto investor with a keen eye for technical analysis, I am encouraged by the recent developments in the Ethana (ENA) market. The breakout above the wedge pattern and the significant accumulation from smart money investors like 0x5ab suggest that the ENA price may be poised for a sustainable recovery.

Ethana Price Prognosis: The surge in Bitcoin‘s price above $65,000 on Monday fueled optimism in the cryptocurrency market, leading to significant gains for major altcoins like Ethana. On a daily basis, Ethana’s price rose by 9.2%, shattering resistance from a wedge formation. This bullish trend is typically seen as the conclusion of a correction phase and could indicate that Ethana’s price has the potential to mount a robust comeback. Furthermore, the presence of smart money accumulation adds credence to this recovery scenario.

Will ENA Price Surpass $1 Barrier in May?

Ethena Price Prediction: $ENA Breaks Out of 4-Week Correction to Target $1.2

For the previous three weeks, the price of Ethena’s coin exhibited a gradual downtrend due to a falling wedge formation. Yet, this common technical pattern often diminishes bearish pressure by means of two converging trendlines. As a result, it sets the stage for potential bullish recovery.

As an analyst, I’ve observed that last Wednesday, the ENA price bounced back from the $0.735 support level with a vengeance, soaring by 16.5% to reach the current trading price of $0.858. This recovery formed two distinct lower highs on the 4-hour chart, indicating a significant shift in market dynamics and ultimately resulting in a powerful breakout from the wedge pattern.

According to the latest data from Spot On Chain, there has been noteworthy action regarding the cryptocurrency ENA. A major player, identified as 0x5ab, extracted a large quantity of 6.26 million ENA tokens from Binance, equivalent to roughly $5.31 million. This represents the first instance where ENA was traded near the price point of around $0.848 per token.

As a researcher, I’ve recently observed an intriguing transaction that took place on Binance within the last hour. Specifically, whale 0x5ab made a withdrawal of approximately 6.26 million $ENA tokens, equivalent to around $5.31 million at the current exchange rate of roughly $0.848 per token. This represents the first instance where this particular whale has withdrawn such a substantial amount from Binance.
Prior to engaging with ENA, the whale previously held $ETH and now holds a stake worth approximately $6.26 million, representing 2,000 units, in Pendle Finance. This stake currently incurs an unrealized loss of around $584,000, equivalent to a decline of roughly 8.5%.
The $ENA price has…
— Spot On Chain (@spotonchain) May 6, 2024

Prior to this addition, the whale’s investment portfolio mainly consisted of Ethereum, worth approximately $6.26 million. Additionally, there were holdings in Pendle Finance, which displayed an unrealized loss of around $584,000, representing a decrease of about 8.5%.

As a crypto investor, I’ve noticed the gradual accumulation of ENA tokens and the emergence of a wedge pattern. This setup indicates a strong likelihood for a price rebound. If this breakout holds steady, the buying pressure could propel the price above the $1 mark and potentially reach the swing high of $1.216.

Technical Indicator 

    Exponential Moving Average: A bullish crossover between the 20 and 50 EMA in a 4-hour chart should provide buyers with suitable support to rebound higher.
    Average Directional Index: The ADX slope uptick at 18% accentuates the period correctio helped the ENA price regain bullish momentum.

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2024-05-06 21:15