On December 19th, Thursday, the crypto market experienced another wave of selling pressure as Bitcoin price dropped below $100k. This correction trend was initiated with Powell’s hawkish speech on Wednesday, accelerating the bearish momentum in most major altcoins. However, the Ethena price, which recently gained market attention, shows potential for quick recovery amid whale buying and reversal setup.
Currently, the ENA price trades at $0.94 with an intraday loss of 12.4%. According to Coingecko, the asset’s market cap is at $2.77 Billion, while the 24-hour trading volume is at $1.22 Billion.
Key Highlights:
- The formation of a rounding bottom pattern drives the major recovery trend in ENA.
- The Ethereum price correction could witness suitable support at $0.88 or $0.76 level, coinciding close with 38.2% and 50% Fibonacci retracement level.
- A positive crossover from the 100-and-200-day exponential moving average could accelerate the bullish momentum and bolster price reversal.
ENA Futures Open Interest Soars as Whales Accumulate Millions in Tokens
Whales are actively accumulating Ethena (ENA), reportedly influenced by Trump’s World Liberty Financial’s association with the token.
Within the past 48 hours, a whale created a new wallet and withdrew 8 million ENA, valued at $9.2 million, from Binance. The data acquired from Lookonchain signals increased whale activity and interest in the token.
Moreover, the ENA’s futures open interest has recorded massive growth from $157 Million to $650 Million— a 317% increase— in the last two months. This sharp rise in OI data reflects increased speculative activity and market participation, suggesting that the traders are positioning themselves for significant price movement.
Ethena Price Correction Sets Stage for Rounding Bottom Pattern
In a 4-day correction, the Ethena price dropped from $1.33 to $0.94, registering a 28% loss. Concerning the ENA coin performance in November and early December, the ongoing pullback could be beneficial for buyers to revive exhausted bullish momentum.
The altcoin trading above 38.2% FIB and key daily EMAs (50, 100, and 200) indicate the broader trend remains bullish.
Moreover, a daily chart shows the Ethena price following a U-shaped recovery structure, indicating the formation of a rounding bottom pattern. The chart setup commonly spotted a major bottom trend, signals a steady transition from a downward trend to accumulation and then recovery.
Thus, the coin buyers could obtain suitable support from the $0.88 or $0.76 support level. Under the pattern’s influence, the ENA coin could drive a 58% surge from its current value before a massive breakout from the pattern’s $1.53 neckline.