This Chart Pattern Could Send Ethena (ENA) Price Up 78% – Here's Why

Ethena (ENA) is starting to catch traders' eyes again, and for good reason. The price of ENA is forming a classic chart setup that usually hints at a potential reversal.

Ethena (ENA) price is showing a classic chart setup that could be a sign of a potential reversal, and crypto expert Captain Faibik is also bullish on the token.

Here’s why.

Ethena Price Shows Classic Chart Pattern For Breakout

ENA price has been on a downward trend since reaching a high of $1.06 in December 2021. The token hit a low of $0.26 in December 2022 before starting to recover.

Recently, ENA price has been forming a chart pattern known as a falling wedge. A falling wedge is a technical analysis term that describes a chart formation where two downward-sloping trendlines converge, creating a wedge shape on the chart. It is a chart pattern that is usually encountered in bear markets and indicates that the strength of the sellers is waning while the buyers are starting to exert more control.

This chart pattern is usually a sign that a breakout to the upside is imminent.

ENA price has now bounced off the lower wedge support and is steadily climbing toward the resistance. At the moment, ENA price is testing the upper boundary of the wedge.

If ENA price manages to break out of the wedge on good volume and a strong daily candle close, it could signal the continuation of the move. For many traders, this type of pattern is a go-to signal for a bullish reversal.

What Are The Ethena Price Targets And Support Zones

The projected move from this wedge, if confirmed, is putting ENA price at around $0.75. This aligns with the height of the wedge pattern and past price consolidation zones. From the current breakout level around $0.42, this represents an estimated 78% gain.

Immediate support levels for ENA price are at $0.36 to $0.38. These levels mark the recent bounce point and will act as a cushion in the event of a failed breakout. The confirmation zone for a continued move is between $0.43 and $0.44, which would indicate a stronger bullish structure.

If ENA price can break out of the wedge on strong volume and close above the resistance at around $0.44, then it could continue to rise toward the next resistance zone at $0.5 to $0.52.

Captain Faibik Is Also Bullish On Ethena

Also, Captain Faibik shared his take on the ENA price chart. In his post, he said:

“ENA Bottomed out & is on the Verge of Wedge Breakout… I’m Still Bullish on it & Holding my bag… Midterm Target: $0.75.”

His comment has quickly gained attention within the trading community on Telegram.

The tweet highlights the anticipation for the potential breakout of ENA from a falling wedge, a technical chart pattern that can signal an upcoming trend reversal.

Captain Faibik's comment "Still Bullish" and "Holding" signifies his personal investment strategy and belief in the long-term potential of ENA, despite the recent market fluctuations.

The midterm target of $0.75 aligns with the analysis of the chart pattern and the potential move from the wedge breakout, which is a common technical analysis approach used by traders to estimate future price ranges.

What To Expect Next From ENA Price

While the current momentum favors a potential breakout of the wedge, traders will be closely monitoring for volume confirmation to validate the pattern.

The $0.44 zone is critical, and a failure to sustain above this level could lead to a steeper pullback, testing the lower wedge support or the $0.36 support range.

Overall, ENA price structure and technical context suggest that the asset may be entering a new phase of price discovery. Traders will be looking for a daily candle close above the resistance line to confirm the breakout strength and signal a stronger bullish structure.

The next few trading sessions could prove pivotal in determining Ethena's short-to-midterm trajectory.