Could a 540% Surge Be on the Horizon Once More?

Key Insights:

• Ethena’s price hits $0.20, stirring speculation of a 540% surge like its previous rally.
• With RSI at 33, technical indicators suggest bearish momentum could lead to further declines.
• Active market participation continues, with open interest at $326.61M and futures volume of $511.17M.

As of the latest data, Ethena is trading at $0.2126, with a 24-hour trading volume of $143.5 million. While the price continues to struggle, the trading volume remains high, reflecting active market participation. The token has seen a decline of 2.43% over the last 24 hours. 

Ethena’s Struggle at Key Support Levels

ENA recent decline has break below its previous low of $0.2180 from November 21. According to Ali_charts Ethena has reached the $0.20 mark again, stirring speculation about a potential surge similar to the 540% rise it saw earlier. The psychological significance of the $0.20 price point is evident, as it has historically been a strong support zone.

If the price fails to hold at this level, the next support could be the S1 Pivot Point at $0.1845. As the token faces more selling pressure, it becomes clear that further declines are possible unless a reversal takes place.

Market Activity and Sentiment

Despite the bearish movement, the market shows active participation. The open interest in ENA stands at $326.61 million, with futures volume reaching $511.17 million. This suggests ongoing market activity, though with a cautious sentiment.

Long positions on platforms like OKX and Binance slightly outweigh short positions, signaling some optimism despite the struggles. One of the most crucial points now is the $0.20 support level. ENA is struggling to maintain its position above this threshold. If the support fails to hold, ENA could test further lower levels.

Technical Indicators Point to Further Pressure

Meanwhile, the Relative Strength Index (RSI) has dropped to 33, approaching the oversold zone. The Moving Average Convergence Divergence (MACD) indicator has also turned bearish, with the signal line now below the MACD. These technical indicators point to growing bearish momentum, suggesting that more downside could follow if ENA fails to rebound.

If the token sees a rebound, resistance could be encountered at the 50-day Exponential Moving Average (EMA) of $0.3079. Traders are waiting to see how ENA reacts to these key levels in the coming days.