ENA Bearish RSI Divergence Signals Correction — Then New ATH

Ethena (ENA) is printing a textbook bearish RSI divergence on the daily chart — a setup that historically signals short-term correction before a larger move resumes. At the time of writing, ENA is trading at approximately $0.2057, down from a recent high near $0.24–$0.25, with the divergence now fully formed and visible across the daily timeframe on Binance.

Analyst CryptoBullet1 (@CryptoBullet1) flagged the setup in a September 22 post, stating: “There’s a strong BearDiv on the daily, so a correction is expected — good opportunity to buy some for the Bull Run. Expecting a new ATH.” He adds a longer-term conviction view: ENA is expected to “shine in 2027–2029” — a multi-year outlook anchored to Ethena’s structural position in the stablecoin market.

What a Bearish RSI Divergence Actually Measures

Before treating this as a directional call, the mechanics matter. A bearish RSI divergence occurs when price makes a higher high while the Relative Strength Index simultaneously makes a lower high. The divergence between the two lines indicates that the momentum driving the price higher is weakening — not that price will immediately collapse, but that the upward thrust is losing internal fuel.

This is a momentum exhaustion signal, not a price level. It identifies that buyers are becoming less aggressive at each successive high — a condition that often resolves through a pullback before the macro trend resumes. The RSI divergence does not predict how deep the correction goes, or how long it lasts — it flags that a correction is structurally overdue.

In ENA’s case, the divergence is clear: price climbed from the ~$0.07 lows through August 2025 to a recent high near $0.24–$0.25, while the RSI trendline across the same period produced a descending sequence of lower highs. Classic bearish divergence — fully formed on the daily candle close.

Signal 1 — Bearish RSI Divergence on the Daily Chart

CryptoBullet1’s daily ENA/USDT chart on Binance captures the divergence in full. The price channel shows a sharp recovery from approximately $0.07 in the lows of 2025 through to recent highs near $0.24–$0.25 — a recovery exceeding 240% from trough to peak. During that same move, the RSI formed a descending trendline of lower highs, indicating the momentum underneath the rally was deteriorating with each successive push.

The projected path drawn on the chart shows an anticipated pullback toward the $0.13–$0.15 support zone before resumption of the bull trend toward a new all-time high above $0.38–$0.40. Current price at $0.2057 sits near the horizontal dotted support line — meaning the first phase of the correction may already be underway.

Signal 2 — Ethena’s Structural Position: Fourth-Largest Stablecoin

CryptoBullet1’s conviction on a new ATH isn’t purely technical. His longer-term bullish thesis rests on a concrete protocol metric: Ethena’s USDe is currently the fourth-largest stablecoin by market cap. This is a fundamental anchor that differentiates ENA from tokens with only technical narratives behind them.

USDe’s stablecoin ranking places Ethena in direct competition with established issuers — a market position that generates protocol fees tied to the delta-neutral yield strategy underpinning USDe. As USDe supply expands, protocol revenue scales, and ENA as the governance and fee-accrual token becomes increasingly tied to that revenue stream. This is the structural argument for ENA’s 2027–2029 outlook — not speculation, but a function of USDe’s growing market share in a stablecoin market that now exceeds $200 billion in aggregate supply.

The combination of a bearish near-term technical signal and a strengthening fundamental position is what creates the setup CryptoBullet1 describes: correct now, accumulate at support, target new ATH as the macro cycle matures. For broader context on where the current market cycle stands, Bitcoin Bull Run Just Started — Google Trends Data Shows No One Cares Yet — a dynamic that typically precedes the altcoin expansion phase where ENA would be positioned to benefit.

The $0.13–$0.15 Zone — Support, Not a Guarantee

The projected correction target sits between $0.13 and $0.15 — a zone that represents approximately a 27%–37% decline from current price of $0.2057. This is not a precise number — it is a support cluster derived from prior horizontal structure and the chart’s dotted projection line.

Critically, bearish divergences can fail. Price can resolve a divergence through time (consolidation) rather than price (correction). If ENA holds above $0.18–$0.19 and the RSI resets higher without a deep correction, the divergence is neutralized and the bull trend resumes sooner. No confirmed reversal signal exists yet at the time of writing — the divergence is the warning, not the verdict.

The $0.14–$0.15 zone is where CryptoBullet1 identifies the “good opportunity to buy” — the level at which the correction would represent sufficient RSI reset to fuel the next leg toward new ATH territory. The Crypto Fear & Greed Index Hits Highest Level Since July 2025 — a broader market condition that historically compresses correction depth during bull cycles, meaning the $0.13–$0.15 target may represent a worst-case scenario rather than a guaranteed landing zone.

What It Says — And What It Doesn’t

What it says: ENA’s daily RSI has formed a confirmed bearish divergence against the recent price highs of $0.24–$0.25. Momentum is weakening at current levels. A short-to-medium-term correction toward the $0.13–$0.15 zone is the analyst’s base case before the bull trend resumes.

What it doesn’t say: The divergence does not confirm the correction has started, does not set a precise bottom, and does not guarantee a new ATH follows. Divergences fail in strong trending markets — if broader market conditions remain elevated, ENA may correct only partially before resuming.

What to watch for continuation: A daily close below $0.18 would confirm the correction phase is underway. RSI falling below 40 on the daily would signal the reset is in progress. A reclaim of $0.25 on a daily close without an RSI reset would invalidate the bearish divergence setup entirely.

Bull and Bear Scenarios

Bullish Scenario — Holds $0.18 and Divergence Resolves via Time

If ENA holds the $0.18–$0.19 zone and the RSI resets through consolidation rather than a sharp sell-off, the divergence is neutralized. Price would then be positioned for a direct move toward the $0.25 prior high and, on a breakout above that level, toward CryptoBullet1’s new ATH target of $0.38–$0.40 — representing approximately an 85%–95% gain from current price. This scenario aligns with Bitcoin’s reclaim of the 365-Day MA, which historically precedes sustained altcoin expansion.

Bearish Scenario — Daily Close Below $0.18 Triggers Deeper Correction

A confirmed daily close below $0.18 opens the path toward the $0.13–$0.15 support zone — a potential drawdown of 27%–37% from current levels. At that range, CryptoBullet1’s accumulation thesis activates. A loss of $0.13 on a closing basis would represent a more significant structural breakdown requiring re-evaluation of the setup.

Bottom Line

ENA is carrying a confirmed bearish RSI divergence on the daily chart — price reached $0.24–$0.25 while RSI traced lower highs, a classic momentum exhaustion signal after a 240%+ recovery from the $0.07 lows. Analyst CryptoBullet1 identifies this as a structurally expected correction, not a trend reversal, with the $0.13–$0.15 zone as the target accumulation area before a bull run toward a new ATH above $0.38. The fundamental anchor remains intact: Ethena’s USDe holds the fourth-largest stablecoin position globally, providing a revenue-generating foundation for the 2027–2029 outlook. The divergence does not confirm the correction has started — it confirms the setup for one exists. Watch $0.18 on the daily close: a break below activates the correction thesis. A hold above it keeps the immediate bull path open toward $0.25 and beyond.

Frequently Asked Questions

Source: Cryptobullet1 · Published by CoinsProbe Markets Desk

Written by

Coinsprobe Markets Desk

Crypto journalist and analyst covering blockchain, DeFi, and digital asset markets at CoinsProbe.

›