The cryptocurrency market has been experiencing a downturn, with altcoins struggling to maintain their momentum. Ethena, a token, is no exception, having failed to sustain a bullish reversal and experiencing a significant pullback. However, as the price approaches a crucial support level, traders are anticipating a comeback.

The Bearish Trend Takes Hold

The market capitalization of Ethena has been declining rapidly, dropping from $1.33 billion to $1 billion in just 60 days. The token's price has also failed to break the $1 mark, indicating a bearish trend. Furthermore, an attempt to reverse this trend through an inverted head and shoulder pattern was unsuccessful due to a sudden surge in supply at the $1 mark.

Technical Indicators Suggest a Reversal

Despite the bearish trend, technical indicators suggest that a reversal could be imminent. The MACD indicator in the 4H chart shows a bullish continuation, indicating a potential reversal. Additionally, the 50 and 200 EMA in the 4H chart maintain a declining trend, but the death cross warns of a significant bearish influence.

Will Ethena Reclaim $1?

With the price currently trading at $0.70, a bullish reversal could push the token to the $0.84 mark. However, if the price falls below $0.65, the supply pressure could increase, leading to a drop to $0.50. The outcome depends on the momentum of the bullish reversal and the broader market conditions.

Overall, Ethena's price action suggests that a bullish comeback could be on the horizon, but the market's current slowdown and bearish trend pose significant challenges.