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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.
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