In the last ten days, Ethena has been in a corrective phase, losing part of its recent gains. Analysts see this as an opportunity for future growth.
Historical Bull Flags of Ethena
Ethena's first significant upward movement began with a rally from $0.424 to $0.70, representing a more than 60% increase. However, this was followed by a sharp correction with the price dropping to $0.51, establishing strong support. This marked the formation of the first bull flag. The current setup mirrors the previous pattern, as after reaching $0.855, Ethena again dipped by 27%, creating a second bull flag.
Technical Signals Indicate Upside
Technical indicators show that Ethena's RSI is at 51.93 after the correction. Signals indicate a potential return of buying strength. Additionally, the +DI is above the -DI, suggesting a slight dominance of buying pressure over selling, which confirms the current trend's strength.
Potential Short Squeeze and Its Impact on Price
Liquidation data reveals that approximately $5.31 million in short positions are clustered around the $0.664 level, which could lead to a short squeeze. This may create an increase in buying pressure and set the stage for the next upward move.
Ethena is at a critical juncture, suggesting a possible momentum resurgence. Current technical indicators point towards potential growth, and if buyers leverage this positioning, the token could anticipate a significant rally.
