On Thursday, December 19, the cryptocurrency market experienced another wave of selling pressure as the price of Bitcoin fell below $100,000. This corrective trend began with Powell’s aggressive speech on Wednesday, accelerating bearish momentum in most major altcoins. However, Ethena price, which has recently caught the market’s attention, is showing potential for a quick recovery amid whale buying and a reversal.
ENA is currently trading at $0.94 with an intraday loss of 12.4%. The asset has a market capitalization of $2.77 billion and a 24-hour trading volume of $1.22 billion, Coingeko said.
Key points:
- The formation of a rounded bottom pattern determines the main trend of ENA recovery.
- A correction in Ethereum prices could provide suitable support at $0.88 or $0.76, which coincides with the 38.2% and 50% Fibonacci retracement levels.
- A positive crossover of the 100- and 200-day exponential moving average could accelerate bullish momentum and contribute to a price reversal.
Open interest in ENA futures rises as whales accumulate millions in tokens
Whales have been actively accumulating Ethena (ENA), reportedly influenced by Trump’s World Liberty Financial association with the token.
In the last 48 hours, the whale created a new wallet and withdrew 8 million ENA worth $9.2 million from Binance. Data received from Lookonchain signals an increase in whale activity and interest in the token.
Moreover, over the past two months, open interest in ENA futures has skyrocketed from $157 million to $650 million (an increase of 317%). This sharp rise in OI data reflects increased speculative activity and market participation, suggesting traders are bracing for significant price movements.
Ethena price correction creates the basis for the formation of a rounding bottom pattern
During the 4-day correction, Ethena’s price fell from $1.33 to $0.94, recording a loss of 28%. Regarding the performance of ENA coin in November and early December, the ongoing pullback could be useful for buyers to revive the depleted bullish momentum.
Altcoin trading above the 38.2% FIB and key daily EMAs (50, 100 and 200) indicate that the broader trend remains bullish.
Moreover, the daily chart shows that Ethena price is following a U-shaped retracement pattern, indicating the formation of a rounded bottom pattern. The chart usually reveals a major downtrend, signaling a sustained transition from a downtrend to accumulation and then recovery.
Thus, coin buyers can get suitable support from the $0.88 or $0.76 support level. Under the influence of the pattern, ENA coin could surge 58% from its current value before making a massive breakout of the pattern’s $1.53 neckline.
