Ethena has recorded a sharp drop across multiple timeframes, with the price falling over 32% this week and nearly 8% in the past 24 hours. The move continues a broader monthly and quarterly decline of around 40%. Volume has increased significantly during this downturn, pushing the token below its lower Bollinger Band and toward multi-week lows.
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Oversold Signals Appear, Trend Remains Strong
Short-term momentum indicators are now signaling extreme weakness. The 14-period Relative Strength Index (RSI) has dropped to 32, while the 7-period RSI stands at 21. These values suggest the token is in oversold territory. At the same time, the Average True Range (ATR) has risen, confirming higher volatility.
The price continues to trend outside the lower Bollinger Band, typically a sign that the move is extending beyond its usual range. However, the Average Directional Index (ADX) is now at 41 – a level that reflects the strength of the current downtrend.
Key Fibonacci retracement zones are now being tested. Ethena has already moved below the 61.8% retracement at $0.41. The next area of potential support is at the 78.6% retracement near $0.29. Market reaction at this level may determine whether the current trend slows or extends further.
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What’s Next?
Multiple indicators suggest Ethena is in an oversold state, with momentum weakening and volatility rising. However, the ADX indicates that the downward trend remains strong. Support at $0.29 will be a key level to monitor.
As always, while technical analysis highlights price patterns and trend strength, it does not predict outcomes. Market direction may depend on how investors respond to both technical levels and broader developments in the protocol.
