Prominent cryptocurrency analyst Ali Martinez has predicted an imminent price reversal for ENA, the native token of the Ethena ecosystem, despite its recent bearish momentum. ENA has faced significant losses, plunging 35.37% over the past week and 12.64% in the last 24 hours. At the time of writing, the token is trading at $0.5054, down from its previous highs.
Technical Indicators Suggest Potential Recovery
Martinez pointed to the TD Sequential indicator on ENA’s 4-hour chart, noting multiple buy signals despite prevailing bearish sentiment. While sellers remain in control, he suggests that the ongoing downtrend could soon reach exhaustion, paving the way for a rebound. However, given the heightened volatility in the crypto market, traders remain cautious, with some arguing that price movements lack clear rationale.
#Ethena $ENA looks primed for a rebound as the TD Sequential indicator has flashed multiple buy signals on the 4-hour chart! pic.twitter.com/QZZJHh4tQr
— Ali (@ali_charts) February 6, 2025
The 4-hour price chart illustrates a strong bearish pattern, with ENA forming lower highs and lower lows. Rejections at key Fibonacci retracement levels—50% at $0.6066 and 61.8% at $0.5859—confirm selling pressure. Martinez identified a red “9” on the TD Sequential setup, signaling a potential reversal if buyers regain control.
For ENA to confirm a bullish breakout, it must surpass the $0.5450–$0.5600 resistance zone, with a definitive trend reversal occurring if $0.5859 is breached with strong volume. On the downside, the token could dip further to the $0.4834–$0.4637 range before mounting a recovery.
The Relative Strength Index (RSI) currently stands at 32.67, suggesting that ENA is approaching the oversold region—an indication that buyers may soon step in. Additionally, the token is trading at the lower end of the Bollinger Bands, reinforcing the prevailing uncertainty in the market.
Ethena’s iUSDe Launch to Boost Institutional Adoption
In a major ecosystem development, Ethena is set to introduce iUSDe, a yield-bearing synthetic dollar, later this month. While a specific launch date remains undisclosed, this product is expected to target institutional investors. Built upon Ethena’s Staked USDe (sUSDe), iUSDe will offer additional token-level restrictions and a simple wrapper contract.
Crypto analyst “Gravano” speculates that iUSDe’s institutional focus could attract major issuers such as BlackRock, Franklin Templeton, and Fidelity, positioning Ethena’s ecosystem as a leading player in the stablecoin sector. Ethena’s USDe already ranks as the third-largest dollar-pegged stablecoin, and iUSDe’s launch could further strengthen its market presence.
Also Read: Polygon (POL) Faces Critical $0.28 Support: Can It Stage a Comeback After 80% Decline?
As ENA navigates a volatile market, investors are closely watching technical indicators and upcoming developments in the Ethena ecosystem for signs of a potential rebound.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
