- Ethena (ENA) surged 21% in one day to a six-month high at $0.5885.
- The monthly increases surpassed 113%, with market capitalization reaching around $3.6 billion during a breakout.
- Major resistance at $0.5433 broken; next targets $0.8225 and $1.0045 indicate strong upside.
Ethena (ENA) surged an impressive 21% in a single day, climbing from a session low of $0.465 to a six-month peak at $0.5885. The sharp upsurge pushed its monthly gains above 113%, increasing its market capitalization to about $3.6 billion.
A significant breakout was solidified after ENA surged above the major resistance area around $0.5433. This price level has become a possible entry point for potential buying opportunities for traders to benefit from additional increases. With continuing bull momentum, targets at $0.8225 and $1.0045 seem to be within grasp, and that will represent major upside potential.
Also Read: Ethena (ENA) Breaks Resistance, Eyes $0.80–$0.95 as Next Target Range
Ethena Breakout Could Trigger Uptrend
On the flip side, a decline below the $0.5350–$0.4940 supporting region would discredit the bullish formation. Risk management can be done with a stop-loss at $0.3930 in the event of a failed breakout. Such a swing in price could be indicative of a resumption in the previous downtrend, and this should be watched carefully by traders.
Back on July 12, when the token was exchanging at $0.33, the token escaped from its downtrend, according to Crypto_TheBoss. Since that moment, the price jumped almost 97% and touched a key resistance area highlighted with yellow lines by technical analysts. This area currently forms a crucial barrier to price increases.
Traders should expect a possible pullback at this resistance, due to its historical strength. However, if ENA breaks and remains above this area, it will more than likely generate more upward movement along additional resistance areas. Close observation of price action here will be in order.
Wedge Breakout and Fibonacci Targets
Technically, ENA has been held in a wedge formation since last June. Traders with the Fibonacci extension tool drew price targets in this uptrend. This extension begins at $0.22 and goes to a recent high of around $0.59, signaling important levels for traders.
The critical number to watch is $0.60, the 0.5 Fibonacci extension level. A clear breakout to $0.58 and thereafter $0.60 could unleash gains to $0.65, $0.71, and possibly higher, with intense whale buying and growing volume to support that.
However, if ENA cannot remain above $0.51, the bull case fail. This would make the breakout of the wedge breakout and may create a pullback, so these price areas will need to be carefully monitored.
Also Read: Ethena (ENA) Price Prediction: Can It Reach $1.31 Again?
