Ethena (ENA), Lido (LDO), and Pump.fun (PUMP) started the new week in the red, becoming the focus of the decline in the cryptocurrency market in the past 24 hours. The increasing sell-off has put these altcoins at risk of further deep corrections.
The entire market has witnessed a massive liquidation volume of up to $666 million, as selling pressure far exceeds demand. Notably, $502 million of that came from long positions, compared to only $164 million in short positions, reflecting a widespread forced exit among the bulls.
Ethena continues to face correction pressure
As of Monday noon, Ethena (ENA) is trading around $0.6881, slightly up from the recent low of $0.6744. However, this synthetic stablecoin project has still recorded three consecutive declining sessions and is nearing the support line formed from the lows on August 2 and August 21, at the area of $0.6500.
If the price breaks below this threshold, the downward trend may extend towards the 50-day EMA at $0.5876, and further down to the support area of $0.5122 – coinciding with the low of August 2.
Current technical signals are also leaning towards the bears: the MACD line and the MACD signal line are both sloping down after the bearish cross formed on August 15, while the continuous red histogram below the 0 level shows that the downward momentum is getting stronger.
On the other hand, the RSI index is at 53, hovering above the neutral zone. This development reflects a weakening of buying pressure; if the RSI falls below 50, selling pressure could increase significantly, threatening to break the current trend.
Conversely, a rebound from the support line or a breakout above $0.7533 (Friday's closing price) may open up room for ENA to target the peak of $0.8555 established on August 11.
Lido faces the risk of a double top reversal
Lido (LDO) continued to decline an additional 1% in Monday's trading session, extending the losing streak after a drop of 6.27% on Sunday. The governance token of this liquidity staking platform is signaling the formation of a double top, with peaks established on August 12 and August 22.
On the daily chart, the RSI indicator shows lower peaks, coinciding with the double top scenario and suggesting the emergence of bearish divergence. The RSI is currently at 58, approaching the neutral zone, reflecting a significant weakening of buying pressure.
If the price closes below the support level of $1.2250 (the low of August 10), the downward pressure will be activated, opening the possibility of testing the 200-day EMA around $1.1046.
Conversely, to regain bullish momentum, LDO needs to break through the peak of $1.6230 established on August 12. At that point, the upward momentum could extend, bringing the price closer to the area of $1.9590 – the peak of February 17.
Pump.fun faces the risk of further declines within a descending wedge pattern
On the 4-hour chart, Pump.fun continues to fall within a descending wedge pattern, extending a 7% decline since Sunday. Currently, this meme coin token is fluctuating around $0.002886, with the nearest target being the support area of $0.002744 (the low of August 19).
Although supported by some short-term support levels, the price is likely to retest the lower boundary of the wedge at $0.002579.
The 4-hour RSI indicator has dropped to 40, nearing the oversold zone as selling pressure intensifies. At the same time, the MACD line and the signal line continue to weaken since the sell signal on August 24.
Conversely, if PUMP rebounds from support, the recovery momentum could push the price to test the 50-period EMA at $0.003102, while also approaching the upper boundary of the wedge pattern.
