ENA: Is $1.53 the next stop amidst THIS bullish trend?

• ENA’s cup-and-handle breakout suggests a bullish target of $1.53, reclaiming $1.10 as support.
• Positive MACD and ADX metrics offset declining network growth, supporting short-term rally sustainability.

Ethena [ENA] has gained significant traction with a remarkable 18.05% daily surge, attracting attention from traders and investors alike. Trading at $1.13 at press time, ENA successfully reclaimed the $1.10 level, a critical resistance that previously capped its price. 

This move has sparked discussions about whether ENA can sustain its current momentum and target the $1.53 level, driven by strong technical and market dynamics.

Technical analysis: Cup and handle set the stage

ENA has broken out of a textbook cup-and-handle pattern, a bullish technical formation indicating the potential for further gains. This breakout above the $1.10 neckline has fueled optimism, suggesting a projected price move toward the $1.53 resistance level. 

The pattern reflects months of accumulation, followed by a decisive breakout, which traders often interpret as a signal of continued upward momentum.

Source: TradingView

ENA technical indicators: Momentum builds

Technical indicators further validate ENA’s strong performance. The MACD indicator shows a bullish crossover, with the MACD line at 0.1290 rising above the signal line at 0.1170. The histogram bars continue to expand, signaling strengthening momentum. 

Additionally, the Average Directional Index (ADX) stands at 47.86, indicating a robust and definitive trend. These metrics suggest that ENA’s current rally could have the strength to continue toward higher price levels.

Source: TradingView

Network growth declines

Despite the bullish price action, ENA’s network growth has declined significantly to 182 from the previous day’s 444. This metric indicates a decrease in new participants entering the ecosystem, which may pose challenges to sustaining long-term momentum. 

However, the active engagement of existing market participants continues to drive the rally forward.

Source: Santiment

Price DAA divergence supports the rally

Despite the decline in network growth, ENA’s price-DAA divergence remains positive. At press time, the DAA divergence stands at 23.86%, indicating that although new network activity has waned, active addresses are engaging more intensively.

This dynamic highlights the commitment of current market participants, reinforcing the case for a continued rally in the near term.

Source: Santiment

Can ENA reach $1.53?

With a strong technical setup, MACD at 0.1290, ADX at 47.86, and positive price-DAA divergence, ENA is well-positioned to test the $1.53 resistance.

Read Ethena [ENA] Price Prediction 2024-25

While declining network growth raises concerns, the rally appears sustainable in the short term due to the strong engagement and bullish momentum.