Ethena ($ENA) has been sliding hard this week. After touching a local high near $0.70, the token has now dipped below $0.55, signaling that sellers are in control. This drop has caught the attention of traders, and elite analyst Ali Martinez (@ali_charts) has shared a clear warning.
Analyzing the ENA Chart
Ali’s 4-hour chart shows ENA breaking under a key support zone at $0.55. This level had been tested multiple times before, acting as a floor for short-term price action. With this support breaking, momentum clearly favors the bears.
The volume profile bars on the left highlight where the heaviest trading activity has taken place. Most volume is concentrated between $0.54 and $0.60, meaning losing this zone can trigger a quick move lower. If selling pressure continues, the next key support is around $0.49, which Ali also noted in his tweet.
On the upside, ENA would need to reclaim $0.60–$0.62 to show signs of a short-term reversal. Until then, rallies could be met with selling.
Ali’s tweet was simple: ENA is breaking down, and $0.49 is the level to watch next. His warning comes as the broader crypto market is in a correction, and speculative altcoins like ENA tend to see sharper pullbacks when sentiment weakens.
The move from $0.70 to below $0.55 represents a drop of over 20% in just a few sessions. This kind of volatility is normal for new or trending tokens, but it also means risk is high for anyone buying without a clear plan.
Read also: Ripple’s Co-Founder Is Selling XRP
Bullish vs Bearish Scenarios for ENA
- Bullish Scenario:
If ENA can hold $0.49–$0.50 and bounce back above $0.55, traders could see a relief rally toward $0.60–$0.62. A breakout over that zone could open the door to retesting $0.68–$0.70. - Bearish Scenario:
If the token loses $0.49, the next area to watch is around $0.44, followed by $0.40. A clean break below $0.49 could trigger stop-loss cascades and accelerate the sell-off.
Opinion and Trading Thoughts
Right now, ENA looks weak in the short term. For traders thinking about buying the dip, it might be smarter to wait for a test below $0.50 or see if the token can reclaim $0.55 with strong volume. Chasing entries in the middle of a breakdown often leads to frustration.
If the market stabilizes and ENA forms a base near $0.49, that could become a cleaner entry for the next move up. Until then, patience is likely the best strategy.
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