Ethena [ENA] was one of the handful of altcoins among the top 100 crypto assets by market cap to be in the green over the past day. At press time, the 5.48% gain in 24 hours came alongside a 93% increase in daily trading volume and a 10% spike in Open Interest.
On the 16th of June, the new Fed chair, Kevin Warsh, attended his first FOMC meeting. The Fed’s decision to keep interest rates unchanged at 3.50%-3.75%, combined with the slight hawkishness in Warsh’s statements, led to risk-off sentiment in the market.
Bitcoin [BTC] faced rejection at $67.2k earlier this week, continued its descent, and looked likely to fall below the $64k local support zone. Meanwhile, Ethena was climbing higher.
Can ENA’s bullish strength last?
The long-term price trend of Ethena remained bearish. As the 1-day chart above indicates, the swing structure was bearish. A week ago, the altcoin moved below the $0.0765 swing low set in April, effectively establishing a bearish trend continuation.
A new low was set at $0.0699 on Wednesday, the 10th of June. Since then, ENA has climbed almost 33% in eight days. In comparison, Bitcoin’s bounce was smaller at 5.27% since last Wednesday’s low.
Moreover, altcoins have, in general, shown amplified price moves in the direction of Bitcoin due to market sentiment and capital flow effects. The fact remained that BTC and ENA were both in a long-term downtrend, and the recent bounce served as a selling opportunity for traders in both assets.
What should ENA traders do?
The 4-hour chart of Ethena’s native token highlighted which levels would be key in case of a relief rally. At the time of writing, the psychological round-number resistance at $0.10 was keeping the bulls at bay.
The H4 Fibonacci retracement levels asserted that the $0.094 and $0.099 were key levels in case of a bounce. In recent hours of trading, both proved to be strong bearish barriers.
A continued BTC sell-off would negatively affect altcoin sentiment. The bearishly poised ENA remains likely to slide lower in the coming days and weeks.
Final Summary
- Ethena has bounced just over 5% in the past 24 hours, a feat only a handful of other altcoins in the top 100 list managed.
- This bounce was part of a relief rally and not a recovery, and the bounce was already looking like it was reversing.