- ENA has formed a head and shoulders pattern on its price chart, highlighting increased selling activity.
- An upcoming ENA token unlock is expected to amplify this pressure, potentially driving the asset’s value even lower.
Over the past week, Ethena [ENA] has already shed 11.89% of its market value, with losses extending into the last 24 hours as the token dropped another 2.01%.
Given the current market structure and prevailing bearish trends, ENA is likely to face further declines, with the price possibly establishing new lows.
Head and shoulders pattern emerging on ENA chart
On the 4-hour chart, ENA appeared to be forming a head and shoulders pattern, a bearish technical signal. The pattern is nearly complete, potentially just one candlestick away from confirmation.
If the pattern fully forms, ENA could enter another bearish phase. A drop below the support level, commonly referred to as the neckline, would likely trigger a significant decline in price.
The chart indicates that ENA could fall to $0.454, representing a steep 49.10% drop from its current price of $0.92. Without a strong support to absorb the selling pressure at this level, the token could face even deeper losses.
Source: TradingView
Market activity has further contributed to the bearish outlook, with traders intensifying the ongoing selling pressure.
Selling pressure intensifies in the derivative market
The derivative market was experiencing high selling pressure, with sellers dominating trading activity.
As of press time, the Funding Rate stood at -0.0019%, firmly in negative territory.
A negative Funding Rate means that short traders are paying a premium to main
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Author: Olayiwola Dolapo
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