Ethena (ENA) Coils Inside Descending Pattern – $3 Rally Imminent?

Ethena's ENA token is squeezing the life out of a bearish chart formation. The tightening action signals a potential explosive move is brewing.

The Setup: A Spring-Loaded Chart

ENA has been carving out a classic descending pattern—lower highs, lower lows. But that compression is reaching its peak. Every bounce gets sold, every dip gets bought, and the trading range is getting crushed into a tighter and tighter wedge. It's textbook consolidation before a breakout.

The Target: Eyes on the Prize

All this coiled energy needs a destination. The technical picture points squarely toward the $3 level. A clean break above the pattern's upper boundary would confirm the bulls are back in the driver's seat, targeting that key psychological and resistance zone. It's the logical next stop if the buyers muster enough force.

The Catalyst: Waiting for the Spark

Patterns don't break themselves. The market needs a catalyst—a major protocol announcement, a surge in Total Value Locked (TVL), or just a wave of fresh capital rotating into the synthetic dollar space. When it comes, the move could be violent. These tightly wound setups often resolve with momentum that leaves latecomers chasing.

Of course, in crypto, a 'sure thing' is just a chart pattern waiting to be rug-pulled by a whale with a bigger spreadsheet. But for now, the tape is whispering a bullish secret. Watch that upper trendline. A decisive close above it isn't just a signal—it's a starting gun.

Price Holds Structure Within Descending Channel

ENA is currently operating within a repeating descending channel, continuously showing strong support levels between $0.21 and $0.25. The present upswinging movement, having started at a turning point, is similar to earlier reversals and could indicate renewed bullish strength. If the upper channel line is broken, another long-term upswing, such as earlier impulsive movements, could start.

Historical observations indicate that each descending channel breaks out to FORM strong rallies. Various levels are evident on the chart, which may be used as staged targets when breaking out: $0.35, $0.46, $0.67, $0.88, and $1.32. These levels are based on areas of strong reactions during past periods of consolidation.

If the bullish momentum continues, additional technical targets of the token could be $2.00 and $3.00, with $3.00 identified as the most prominent area to sell. These levels are significant past areas of strong resistance. Although the chart pattern is conducive to further advancement, it is important to keep risk management in mind when approaching each target. A drop below $0.21 will RENDER the chart pattern invalid.

Indicators Hint at Stabilizing Market Conditions

The RSI is NEAR 40, indicating weak bullish strength, which is currently below 50. This suggests that the market is generally in a weak bearish cycle, but it has shown signs of recovery. Prior to this, the RSI reached a peak close to 70, which is an indication of a bullish phase.

The MACD is also bearish, with both lines remaining below zero. Although the bars of the histogram are getting smaller and negative, showing weakening selling pressure, it also suggests reversal potential. While a bullish cross has not yet occurred, it is true that the momentum is becoming more stable, suggesting a possible transition if the strength continues.