ENA Price Prediction: Bearish Breakout Points to $0.57 Risk

Ethena (ENA) has broken out from the support line of a parallel channel.
Analyst Ali Martinez said that ENA needs to reclaim $0.86 and turn it into support.
A failure to reclaim $0.86 could put ENA at the risk of dropping to $0.69 or $0.57.

ENA, the native token of the synthetic dollar protocol Ethena, is facing significant bearish pressure despite an overall recovering market, according to crypto analyst Ali Martinez. He warns that if ENA fails to reclaim a crucial price level, a major price crash could occur.

In a post on X (formerly Twitter), Martinez highlighted that the ENA token has broken out of a parallel channel. As shown in the image below, the upper trendline acted as resistance, and the lower trendline provided support. This bearish breakout suggests potential downward momentum for ENA.

Traders should wait for confirmation, as the breakout could be a fakeout. However, ENA remains at risk of a price correction to $0.69 or even $0.57. To avoid this, ENA needs to reclaim the $0.86 support level and target $1.

Currently, ENA is trading at $0.8201, up 1.68% in the past 24 hours. Its market cap sits at $2.48 billion, ranking it as the 47th-largest digital asset on CoinMarketCap. However, the token has plummeted 16.50% in the last week and 33.21% in the past month.

ENA Price Analysis

The daily chart from TradingView (below) shows that the Relative Strength Index (RSI) is at 40.02. This indicates that bears are in control of ENA’s price action. The RSI line’s slope suggests this bearish trend may continue.

The MACD also paints a concerning picture. The signal line (red) remains above the MACD line (blue), and the MACD histogram is also red. However, the histogram’s intensity is waning, which could offer a glimmer of hope for ENA.

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