3 Key Ethena (ENA) Support Levels To Monitor – Analyst

Ethena (ENA) prices are presently in the red zone during a broader crypto market correction. According to data from CoinMarketCap, the DeFi token recorded a significant 2.00% loss in the past day, with prices presently set hovering around $0.55.  Amidst this price decline, top market analyst Ali Martinez has identified the major support regions that investors should monitor in the event of any further price retracement.

According to Martinez, the cost basis distribution (CBD) model has revealed the three short-term relevant support zones in the ENA market. For context, the CBD model is an on-chain framework that visualizes the amount of tokens accumulated at various price levels. It is used to identify important price zones, i.e., potential support or resistance levels, based on their registered volumes of accumulation.

In the chart above, it is observed that the more intense (warmer) the color, the higher the greater supply concentration of ENA at that level. Based on this system, it can be inferred that the immediate support levels for ENA currently lie around $0.44 and $0.47, where significant price clusters have been formed in the last month. However, if a compelling selling pressure forces the ENA price below this support zone, investors should anticipate the next price halt around $0.35. This price region is presently the strongest support in the Ethena market, as shown by the deepest red horizontal bar on the CBD model, which represents an estimated $1 billion ENA supply cluster.

Notably, a price crash to the $0.35 support zone indicates a potential estimated 37.5% loss from current prices. Meanwhile, the CBD model also reveals that ENA’s next price resistance sits around the $0.60, at which lies the next immediate cluster above the spot price.

At the time of writing, ENA trades at $0.57, reflecting a 2.08% decline in the last 24 hours as earlier stated. Meanwhile, the token’s daily trading volume is up by 2.05% indicating a slight rise in market engagement and transaction volume. According to CoinCodex, investor sentiment remains strongly bullish, with 67% of the past month’s trading days closing in the green. Additionally, the Fear & Greed Index sits at 65, reflecting a relatively strong appetite for risk among investors. However, Coincodex analysts hold a cautious market view with predictions of $0.46 and $0.45 in the next five and 30 days, respectively. Meanwhile, their long-term forecast project ENA to also trade around $0.46 in the next three months.