A widely followed crypto analyst believes one Ethereum (ETH)-based decentralized finance (DeFi) token is being set up for a large rally.
According to pseudonymous trader The Flow Horse, the governance token of Ethena (ENA) is one of many new altcoins presenting opportunities, but requires patience for payoff.
“There are a couple pairs that I am eyeing that are relatively new and have been going through their first longer-rounded pullbacks similar to ENA below.
Almost all new alts offer a very basic and reliable diagonal breakout setup if you are patient enough.
I think this is setting up to move much higher. Unlocks are still a year out.”
According to another crypto analyst called Altcoin Sherpa, ENA appears likely to extend its upward momentum after retesting the Fibonacci retracement level at $0.76.
“ENA: I’m out of this one but I think it looks solid. .618 Fibonacci + support/resistance level and market looking ok.”
Looking at the altcoin markets as a whole, another pseudonymous trader known as Rekt Capital tells his 461,000 followers on the social media platform X that the OTHERS chart, which tracks the market cap of all cryptocurrencies excluding the 10 largest digital assets, is potentially gearing up for a bounce off the $250 billion level.
Based on his chart, the analyst appears to be initially targeting the $315 billion level before an eventual run to the old highs near $425 billion.
“Altcoin Market Cap is still holding the $250 billion well as support, positioning itself for a future move to the upside via the black pathway.”
ENA is worth $0.885 at time of writing, up 8% on the day.
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Featured Image: Shutterstock/NextMarsMedia/Natalia Siiatovskaia
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