ENA has gone down by over 22% in the past week and has recently retested its all-time low. One trader favors a bearish Ethena price prediction as the token has dropped below a key weekly support.
Since August 2024, data from DeFi Llama shows that the protocol’s earnings have been steadily declining, moving from $4 million back then to just $50,000 in November as mint fees have declined sharply.
Ethena’s USDe circulating supply has suffered a strong setback, declining from a peak of $15 billion in mid-October to just $6.7 billion at the time of writing.
It seems that, during times of market turmoil, investors prefer to rely on well-established names in the stablecoin space like Tether’s USDT and Circle’s USDC. Hence, this protocol could be suffering the consequences of a flight-to-safety move.
Crypto analyst ChiefraT shared an interesting chart that shows a bearish breakout below Ethena’s long-standing weekly support.
This worsens the token’s situation, as the market could be ready to dump the token to discover how low the price needs to go for buyers to show up.
Ethena Price Prediction: ENA Faces 50% Correction After Losing Key Support
Trading volumes for ENA have increased by 33% in the past 24 hours and currently account for 20% of the token’s circulating market cap as the price struggles to stay above the $0.20 level.
The $0.18 area is the key support to watch for ENA as the token will hit the lower bound of its descending price channel if it touches that threshold.
The Relative Strength Index (RSI) remains heavily depressed at 32, indicating that negative momentum has accelerated.
Meanwhile, if the selling spree continues and ENA is pushed down to break below this trend line support, nothing would prevent a much stronger correction to $0.10. This means a total downside risk of 50% for the token in the near term.
Although ENA’s outlook is quite bearish, top crypto presales like Maxi Doge ($MAXI) continue to capture investors’ attention as this type of project can deliver the highest upside potential once cryptos start to recover.
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