ENA prices maintain a 25% weekly gain, weakening momentum

Summary

ENA prices are still about 25% higher than the opening price of US$0.11717 on August 21.

Prices have fallen about 18% from their weekly high of US$0.18023 on August 23.

The daily supertrend indicator remains bullish, with dynamic support around US$0.1202.

Clearing clusters near US$0.150 and US$0.161 may determine ENA's next move.

ENA prices fall back after hitting US$0.18.

As of press time, Ethena (ENA) was trading at approximately US$0.147, up about 25% from the opening price of US$0.11717 on August 21. The token hit an intraday high of $0.18023 on August 23, and the seller later dominated.

The increase from weekly opening price to peak was close to 54%. Since then, ENA has fallen about 18% from that high, indicating traders are taking profits after a rapid rise.

The daily chart shows buyers trying to push prices up again on August 27. ENA rose to US$0.160 on the day, but failed to hold on to its gains and fell back to around US$0.147. Its intraday range is US$0.1424 to US$0.160, reflecting continued volatility after the initial breakout.

Despite this, ENA remained well above the volatile range for most of July and early August. The token was mainly traded between $0.075 and $0.095 until it broke through gains around August 20.

That round of gains caused ENA to quickly break through the US$0.10 and US$0.12 barriers. The price then accelerated to around US$0.18 before entering the current pullback stage.

FalconX loan facility drives Ethena up

The main catalyst for ENA's weekly strength was Ethena's announcement of a partnership with FalconX to establish a US$1 billion secured warehouse loan facility.

Under the arrangement, reserve assets supporting Erena's synthetic U.S. dollar USDe can be used to provide over-mortgage loans to institutional borrowers. The facility could broaden the way Erena deploys its reserves and create another source of revenue for the agreement.

Trading activity increased sharply after the announcement. ENA's daily trading volume reportedly climbed to more than $1.04 billion, an increase of approximately 319%, reflecting traders 'response to the progress of this institution's lending.

The rebound comes as the altcoin environment has become less favorable. The Bitcoin dominance rate rose to about 59.8%, while the altcoin seasonal index fell to 33 from 51, indicating a broader shift in funds to Bitcoin and other large-market assets.

ENA's correction from $0.180 also followed an unusually steep rise. Its relative strength index reportedly reached 88 during the initial rally, putting the token in a deeply overbought territory and increasing the possibility of profit-taking.

Token concentration brings another risk. According to reports, the top 100 largest ENA wallets control about 90% of the circulating supply, which means that the decisions of a relatively small number of holders can have a huge impact on short-term price movements.

ENA technical indicators show that momentum is stabilizing

The 4-hour chart shows that ENA's correction momentum has weakened, but the bullish momentum has not yet fully recovered.

The 4-hour relative strength index was 51.32, slightly higher than its signal average of 48.83. A reading close to 50 indicates kinetic energy is in equilibrium, not overbought or oversold.

ENA's moving average convergence divergence indicator remains bearish. The MACD line is 0.0006, 0.0015 below the signal line, and the histogram shows-0.0009.

However, the red histogram is shrinking. This contraction suggests that although MACD has not yet completed the bullish crossing, the bearish momentum is weakening.

Prices are also starting to form a possible short-term bottom between US$0.140 and US$0.147. After the token briefly approached $0.138, buyers held on to the area, but multiple blockages around $0.150 suggested that sellers remained active above the current price.

On the daily chart, ENA remains above its supertrend support level (approximately US$0.1202). The indicator turned bullish during the breakout period and will continue to support broader recovery prospects as long as prices remain above that level.

The long-short power indicator remains positive at 0.0431. However, its bar chart has fallen back from its recent peak, indicating that buyers still have the overall advantage but have lost some of the strength of the initial rally.

Clearing map focuses on US$0.150

CoinGlass's 3-day clearing heat map shows a concentrated cluster of leveraged positions around US$0.150. As of the end of the chart, ENA was trading just below that level, making it the primary area that could affect the short-term direction.

A break above $0.150 could expose a small liquidity range between $0.153 and $0.158. The most prominent upper cluster is located near US$0.161 to US$0.162, and this area appears as one of the brightest bands on the heat map.

If ENA recovers US$0.150 amid continued buying, prices may be attracted to this area. Subsequent clearing of $0.162 would open the channel for a retest of $0.170, followed by a weekly high near $0.180.

On the downside, there is obvious liquidity around US$0.143 to US$0.141. A loss in this area would weaken the developing 4-hour bottom and could push ENA lower to $0.138.

Below this level, the daily supertrend line (close to $0.1202) becomes the main structural support. The previously mentioned 200-day exponential moving average (approximately $0.1268) provides another area to focus on during a deep pullback.

Therefore, ENA must hold on to the US$0.138 to US$0.140 area and recover US$0.150 to strengthen its recovery attempts. Failure to hold this range will increase the risk that the breakout trend will continue to retreat to US$0.128 to US$0.120.

U.S. traders considering investing in ENA also face risks typically associated with volatile and concentrated governance tokens. FalconX's facilities could expand Erena's institutional activity, but ENA's next price move will depend on whether demand can absorb profit-taking and liquidity above $0.150.

Disclosure: This article does not constitute investment advice. The content and materials on this page are for educational purposes only.