DeFi platforms Ethena and Polygon eye recovery after sustained downturn

Ethena (ENA) is trading around $0.116 on Friday, posting a 6% rise earlier before tapering some of those gains over the past 24 hours.

The move comes as ENA investors are down by an average of about 70%. The huge unrealized losses could indicate that current price levels represent a bottom or less downside risk, per Santiment data.

Meanwhile, Ethena's total value locked (TVL) has grown slightly above $7 billion since the beginning of the year, despite prices crashing, per DefiLlama data.

In the daily chart, the 20-day Exponential Moving Average (EMA) at $0.138 slopes lower and caps rebounds, keeping the short-term trend under pressure. Price remains beneath this gauge, and sustained closes below it preserve a bearish bias. Support is seen at $0.101, with resistance at $0.262 and $0.468.

The Relative Strength Index (RSI) at 30 (near oversold) reflects subdued momentum with limited follow-through on bounces. The Stochastic (Stoch) near 31 shows tentative stabilization after prior extremes. A recovery above the 20-day EMA could ease selling pressure and open the door to a broader consolidation. Failure to reclaim it would keep downside risk intact.

POL sees 10% gain, eyes recovery above 20-day EMA

Polygon (POL) is up nearly 10% over the past 24 hours as of writing. However, the token remains down nearly 50% from its yearly peak of $0.184 on January 11.

Despite the large price drop, Polygon's TVL has held steady above $1 billion over the past month, meaning capital isn't leaving the chain, according to DefiLlama data.

Loss realization also spiked slightly over the past week, climbing to about $40 million, per Santiment data.

In the daily chart, POL/USDT trades at $0.097. The 20-day EMA at $0.104 slopes lower and caps recovery attempts, keeping the short-term trend under pressure. Price remains below this average, which continues to restrain rallies. The RSI at 41, below the midline, reflects subdued momentum, while the Stoch near 40 has turned higher, hinting at tentative stabilization. Immediate resistance aligns at $0.168, while support is seen at $0.088.

Momentum shows early improvement as the RSI and Stoch curl higher, but confirmation would require a daily close above the 20-day EMA to shift bias. A break above $0.168 could pave the way toward the next barrier at $0.212. Failure to reclaim the EMA would keep the downside favored, leaving rebounds shallow.

(The technical analysis of this story was written with the help of an AI tool.)