The cryptocurrency market has begun the week with positive momentum, following a period of fluctuation last week. Both Bitcoin (BTC) and Ethereum (ETH) are showing gains of over 3%, which has positively influenced sentiment across most major altcoins, with the exception of Ethena (ENA).
Although ENA is currently experiencing a slight decline, the overall market sentiment for the token remains constructive. ENA has successfully broken out of a significant pattern and is now in the process of retesting this breakout level, a common occurrence in technical analysis.
Retesting Bump-and-Run Reversal (BARR) Breakout
Analysis of the 4-hour chart for ENA reveals the formation of a Bump-and-Run Reversal (BARR) pattern. This is a recognized technical setup that frequently indicates a transition from a bearish trend to a bullish one.
The BARR pattern typically unfolds in three distinct phases: the Lead-in phase, characterized by a steady downward price trend; the Bump phase, which involves an accelerated sell-off; and the Run phase, where a robust reversal occurs after the descending trendline is breached.
In ENA's case, the breakout above the downtrend line occurred around the $0.4737 mark, suggesting a potential conclusion to the correction phase. Following this breakout, ENA briefly reached a high of $0.5077 before encountering minor selling pressure that caused it to retreat towards the breakout line.
Currently, ENA is retesting this breakout level, trading near $0.4739. This price zone is critical, as it is typically where buyers emerge to confirm the strength of the trend reversal.
Future Outlook for ENA
If buyers successfully defend this support region, it would validate the BARR pattern and potentially initiate the next upward price movement. A sustained increase above the local high of $0.5077 and the 100-hour moving average would likely accelerate the bullish momentum.
Based on the BARR pattern projection, ENA could potentially target $0.7588. This represents a significant upside potential of nearly 60% from its current trading levels.
Conversely, if ENA experiences a decisive close below the breakout support trendline, the confirmation of the breakout could be weakened. This scenario might suggest a period of consolidation before another upward attempt. For the time being, the technical structure remains bullish, and traders are closely observing the current retest as a pivotal moment that will determine ENA's next directional move.