Ethena price has crashed over the past three weeks, dropping from a high of $0.90 to $0.5856 and is now hovering at its lowest level since August 4. It has formed a highly bearish double-top pattern, pointing to more downside in the near term as whales sell.
Ethena Price Technical Analysis Points to a Crash
The daily timeframe chart shows that the Ethena price has formed a double-top pattern at $0.8550 and a neckline at $0.6032, its lowest level on September 28.
A double-top is one of the most bearish signs in technical analysis. Its double-top point coincided with the overshoot level of the Murrey Math Lines tool.
ENA price has moved to the neckline, which also coincides with the strong pivot point. It has also moved below the 50-day Exponential Moving Average (EMA).
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Additionally, the Relative Strength Index (RSI) and the MACD indicators have continued to move downwards. Therefore, the most likely scenario is that the token continues to fall, with the next level to watch being at $0.4726, its highest point in May of this year.
A drop below that level will likely indicate further downside, potentially to the major support/resistance level at $0.40. A move above the ultimate resistance level at $0.7812 will invalidate the bearish outlook.
ENA Price Crash Has Coincided With Falling Whale Holdings
The ongoing Ethena price crash has coincided with the drop in whale holdings. Its whale holdings stand at 49.85 million, down from this month’s high of 56.21 million. Smart money investor have also started to pare back their holdings.
However, Ethena has some important catalysts that may help to offset the weak technicals. For example, the amount of tokens on exchanges has plunged by over 20% in the last 30 days to 5.05 million. Falling exchange balances indicate that investors are not selling their coins.
Another bullish aspect is that Ethena’s total value locked (TVL) has reached a record high of $14.27 billion. This is a spectacular growth for a network that had a TVL of $6 billion in January and $2.5 billion in the same period last year.
Ethena has also had other catalysts. For example, it raised $100 million in a private ENA sale, with companies like Franklin Templeton and Polychain participating. Most recently, StablecoinX raised $890 million to accumulate ENA tokens.
Most recently, the USDe on Binance crossed the $2 billion mark after the launch of the earn product.
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