- ENA could rally by 40% if it reclaims March highs of $0.48
- However, spot market demand seemed to be weak despite a recent accumulation spree
After a 20% pullback, Ethena [ENA] has tapped an interesting $0.30-level for bulls seeking new buying opportunities.
In April, the altcoin formed an ascending channel, and traders exploited the channel’s range lows and highs for gains. This raises the question – Are there more potential opportunities for traders?
Assessing ENA’s potential gains
Source: ENA/USDT, TradingView
On the 12-hour price chart, the pullback hit a confluence support zone of a range-low and a bullish order block (OB, cyan) of $0.28-$0.30. This meant the area could attempt to hold the dump and potentially, trigger a rebound.
If so, it could offer great buying opportunities for swing traders eyeing the mid-range level at $0.34, or the range high at $0.38.
If hit, the levels would translate to 13% and 27% gains, respectively. However, an extended rally and breakout from the channel could push ENA further to $0.44 or $0.48. If the price hits these levels, that would mean 40% potential gains.
On the contrary, the bullish thesis will be invalidated if ENA dips below the $0.28-$0.30 support.
ENA accumulation spikes
Source: Santiment
Santiment data showed that network activity (active addresses) bounced back over the past three days. This coincided with ENA’s price decline. Additionally, there has been a sharp drop in ENA’s supply on exchanges (red line) as address activity spiked.
Taken together, this revealed that a substantial accumulation of ENA occurred over the past three days as the altcoin plunged. A price reversal might be likely if the metrics remain positive.
Source: Coinalyze
Worth noting though that ENA is not out of the woods yet. The rally seen from 27 April was matched by strong spot market demand, as illustrated by the uptick in CVD (Cumulative Volume Delta) Spot indicator.
Alas, the demand soon faltered, as per the slight dip in CVD spot. A strong rebound from the $0.30-area may be confirmed if ENA’s spot market demand increases.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion