Date: Mon, Jan 13, 2025, 01:22 PM GMT
In the cryptocurrency market today, the ongoing correction that began last month has intensified further, with Bitcoin (BTC) dropping by over 3% to trade at $91,000. This decline has been accompanied by a sharp rise in BTC dominance, which now stands at 58.39%, adding significant bearish pressure on altcoins.
Among the impacted tokens, Ethena (ENA) has experienced a sharp 12% drop in the past 24 hours and a 34% weekly decline, erasing significant gains made after bullish news of Donald Trump’s World Liberty Financial buying of ENA.
ENA Clings to Key Support
Ethena (ENA) has been in a sustained downtrend since facing rejection at $1.30 on January 5th. This correction has dragged ENA from its recent high of $1.30 to today’s low of $0.78, following a failure to hold its key support level of $0.85.
Currently trading at $0.78, ENA is clinging to a crucial support zone between $0.72 and $0.79, highlighted in the accompanying chart. If the current support holds, it could pave the way for a recovery rally. However, any breach below $0.72 may trigger a further downside.
Key Pattern Hints Rebound
The latest technical analysis, emphasized by @AMCryptoAlex, points to a potential inverse head and shoulders pattern forming on ENA’s 1-day chart. This pattern is considered a bullish reversal structure, and if confirmed, it could lead to a strong rebound.
The neckline for this pattern is estimated around the $1.30–$1.40 level, and a breakout above this could target levels as high as $2.0.
BTC Dominance and Its Impact
BTC dominance has climbed to 58.39%, nearing its resistance within a falling wedge structure. Previously, this resistance has triggered rejections, which provided relief for altcoins. If BTC dominance faces another rejection at this level, altcoins like ENA could see renewed buying interest.
However, BTC’s ability to hold above the critical $91K–$94K support range remains pivotal. A breakdown in BTC prices could lead to increased sell-offs across the broader altcoin market, including ENA.
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