ENA Faces Bearish Trend as Key Resistance Levels Loom

• Alan Santana’s analysis shows ENA faces bearish momentum with key resistance levels impacting potential recovery.
• Ethena selects Coinbase Prime for custody, enhancing security amid volatile ENA market conditions.

Popular crypto analyst Alan Santana has published a detailed analysis of the Ethena token, ENA, highlighting important developments in its chart patterns that indicate bearish momentum.

ENA was trading about $0.3603 at the time of writing, down 5.66% over the last 24 hours, and lowering its market cap below the $1 billion mark.

iH&S Pattern Signals Bearish Potential for ENA Amid Key Resistance 

Santana found in his analysis an inverted Head & Shoulders (iH&S) pattern on ENA’s chart. Usually perceived as positive when verified, this technical arrangement has lately broken its neckline.

Source: Alan Santana on TradingView

However, a rejection that followed the break pushed ENA below the neckline, indicating a bearish token indicator rather than verifying a rally.

Santana noted that “the RSI is showing some bearish divergence in the short term,” which, together with the present candlestick displaying early symptoms of tiredness, points to a possible more drop on hand.

Santana says the iH&S pattern presents two alternative options. Under the first scenario, ENA would have kept its price above the iH&S neckline, therefore fostering a possible optimistic surge.

ENA’s decline below this line, however, has triggered the second scenario, suggesting that a further bearish movement could take place before any notable bullish trend reemerases. Santana also pointed out, “Patience is essential. When the bottom is in, there will be clear and powerful signals.

He also pointed out a secondary resistance line, which, should ENA rebound, would function as a major breakout point. Rising beyond this secondary resistance would enable ENA to move higher and maybe establish a new development phase.

However, given the state of the market right now, Santana thinks the negative scenario is still more likely and emphasizes that traders would need to exercise patience and exact timing if a recovery is sought.

On the other hand, strategically among this technical volatility, Ethena—the project behind ENA—has chosen Coinbase Prime for wallet and custody needs. Aiming to simplify its minting and redemption procedures, Ethena has included the Coinbase Prime Web3 Wallet, as previously reported by CNF.

Particularly for its USDC and self-custodial wallet options, this action enables Ethena to take advantage of Coinbase’s trusted custody structure, hence improving security and access for users of its Ethereum-based protocol.