If you are planning to trade ENA coin, then don't miss this post. I am going to give you a very useful tip that can help you analyze any coin before investing in it for the long term or during a bull run.
ENA is a well-known coin and many people are interested in trading it. But the truth is that a lot of people got stuck when its price was around $1 or even higher. Right now, it is trading near the 0.2944 level. It looks like it might go down further and touch the 0.27 area. On the daily time frame, the discount area is around 0.20. It's not confirmed whether it will go there or not, but the chart is showing that as a possible zone.
Now let's talk about the fundamentals and why I feel bearish about this coin. ENA's current market cap is 1.63 billion dollars at the price of 0.2944. If the price were to go 5 times higher, then the market cap would need to reach 8.15 billion. That's a huge jump. In today's crash, the market cap dropped by only 5.60%, but the trading volume increased by 37.68%. That means people are still trading it, and if the price is not rising, it shows more people are selling. This kind of activity adds more pressure and can bring the price down even more.
Now look at the supply. The total supply of ENA is 15 billion coins, but right now only 5.55 billion coins are in circulation. Every month, the team is releasing or dumping around 171 million coins into the market. This means supply is increasing fast, and as a result, the market cap will keep getting spread over more coins. This becomes another problem for the price to go up.
Honestly, there is too much hype around this coin on social media. Influencers are promoting it a lot, and nobody knows the real reason why. Yes, during the altcoin season, even useless coins can pump, but if you are thinking about 10x returns from ENA, that’s not going to happen. If you still want to trade it, you must look at the attached chart screen shot. The red line shows the first buying area, the green line is the second buying area, and the white lines are your short-term targets.
I am not your financial advisor and I am not responsible for your profit or loss. I don’t have any paid group or community. I only share my personal trades here. I trade only on spot, and you can follow me for free signals. You can also check the quality of my signals on my profile.
Make sure you don’t miss anything from this post and take your decisions wisely. You can ask me to analyze any coin.
#ENA #ENAUSDT
