Ethena ($ENA) may be on the verge of a rebound as the TD Sequential indicator has flashed a buy signal on its weekly chart. This widely followed technical indicator, designed to identify potential price reversals, suggests that downward momentum for ENA may be weakening. With recent bearish price action, traders and investors are closely watching for confirmation of a potential recovery.
#Ethena $ENA could be primed for a rebound as the TD Sequential indicator flashes a buy signal on the weekly chart, signaling potential upward momentum! pic.twitter.com/oOQu4fDeEb — Ali (@ali_charts) March 6, 2025
According to Crypto Analyst Ali Martinez, the TD Sequential indicator, developed by market analyst Tom DeMark, is used to identify trend exhaustion and potential reversals. It works by counting a series of price bars and generating buy or sell signals when a specific sequence completes. In the case of Ethena, the indicator has printed a ‘9’ buy setup on the weekly timeframe, which historically signals a possible shift from bearish to bullish momentum. When the TD Sequential prints a ‘9’ on a downtrend, it often suggests that sellers are running out of steam and that buyers could soon regain control. This buy signal does not guarantee immediate upward movement but indicates that a price bottom may be forming, making it a crucial level for traders to monitor.
Ethena’s Struggles, Reversal Hopes & Market Impact Ethena has faced a prolonged downtrend, with its price declining significantly over the past several weeks. The latest weekly chart reveals a series of lower lows, consistent with bearish pressure in the market. However, the presence of a TD Sequential buy signal suggests that the selling pressure may be approaching exhaustion. Over the last few months, broader market conditions have also influenced ENA’s price trajectory. Liquidity conditions, macroeconomic trends, and sector-specific developments within the crypto space have all contributed to price volatility. Additionally, recent token unlocks and whale movements have intensified fluctuations, making price action particularly unpredictable.
While the TD Sequential indicator provides a strong signal for a potential rebound, traders will look for confirmation before committing to bullish positions. A key factor will be how ENA responds in the coming days. A sustained move above the nearest resistance levels, along with increased trading volume, could validate the buy signal and encourage further upside momentum. One crucial resistance level to watch is the $0.50-$0.55 range, which previously acted as support before turning into resistance. If ENA can reclaim and hold above this zone, it would strengthen the case for a trend reversal. On the other hand, failure to gain traction could see prices consolidating or even revisiting lower levels before a definitive reversal occurs.
ENA’s potential rebound coincides with improving sentiment in the broader crypto market. Bitcoin and Ethereum have shown resilience after recent pullbacks, leading to renewed optimism across altcoins. If the overall market sustains its recovery, ENA may benefit from increased liquidity and risk appetite among investors. However, external factors such as regulatory developments, macroeconomic shifts, and sentiment-driven volatility will continue to play a role in shaping price movements. Investors should remain cautious and consider additional technical and fundamental factors before making trading decisions.