Etherna's Cryptocurrency Valuation Projection - Could ENA Break the $1 Barrier Without Assistance from Cryptocurrency Whales?
Ethena (ENA), a prominent cryptocurrency, has witnessed a significant surge in its price, with gains of 143% on the monthly chart and 152% on the yearly chart. This price increase is attributed to strong network adoption, retail-led buying, and bullish technicals.
Technical Bullish Signals
A golden cross event occurred where the 50-day Exponential Moving Average (EMA) crossed above the 200-day EMA—a classic bullish indicator—sparking strong buying momentum and signaling a likely extended bull run. The Relative Strength Index (RSI) is also rising, close but not yet in the overbought territory (~68-74), and a bullish Moving Average Convergence Divergence (MACD) crossover further confirms this momentum.
Rapid Growth in Total Value Locked (TVL)
Ethena’s TVL has surpassed $10 billion, driven notably by the adoption of its synthetic dollar stablecoin, USDe. USDe has become the world’s third-largest stablecoin by market cap behind major players like Tether and USDC.
Expanding Stablecoin Supply (USDe)
USDe’s supply has surged over 75% in the last month, reinforcing the protocol’s core value proposition and attracting liquidity. This growth underpins the token’s fundamental strength and ecosystem confidence.
Whale Accumulation and Buybacks
Increased accumulation by whale holders, who now control nearly 30% of circulating ENA tokens, alongside daily $5 million token buybacks, have tightened supply and bolstered price support.
Growing Market Interest and Trading Volume
Open Interest on futures markets rose by $244 million, signaling strong trader appetite. ENA’s trading volume has also increased substantially, reflecting heightened investor engagement and speculative interest.
Upcoming Fundamental Milestones
The protocol is nearing activation of its "fee switch" feature, which could increase revenue, and is progressing towards launching the Converge blockchain, potentially enhancing Ethena’s network utility and attracting further investment.
Despite the price uptick, Ethena whales are yet to show up across the market. Retail traders have been dominant in recent spot activity. Ethena recently bounced off its recent low of $0.55 and successfully defended the $0.60-support level.
Santiment’s data shows Ethena logging positive Price DAA Divergence for seven straight days, a sign of strengthening fundamental demand. The spot market has seen a positive Buy-Sell Delta, with 84.2 million in Buy Volumes compared to 75 million in Sell Volumes, for three consecutive days.
The Parabolic SAR has dipped below price candles, suggesting buyers are in control. At press time, ENA was trading at $0.8086, up 9.05% in 24 hours. However, failure to hold the $0.70 zone could potentially drag Ethena back to $0.55. If Ethena’s price can hold above $0.70, a push towards $1 may be plausible.
The on-chain profitability at the time of writing suggests that the ratio of transactions in profit to loss stands at 4.16, with 75.38 million transactions in profit versus 18.08 million in loss. The Futures market also shows a lack of large positions, according to CryptoQuant’s Futures Average Order Size data. In the past 30 days, there have been no Big Whale Orders in the Spot market, as per CryptoQuant’s Spot Average Order Size data.
- The recent surge in Ethena's price might be influenced by XRP price prediction as well, given the bullish sentiment in the crypto market.
- Some analysts are recommending investing in Ethereum (ETH) alongside ENA, seeing the potential growth in both finance and technology sectors.
- The golden cross event for ENA, where the 50-day and 200-day Exponential Moving Averages (EMAs) crossed, could also be reciprocated in XRP, considering their correlation in the crypto market.
- As Ethereum's TVL surpassed $10 billion, there have been discussions about the potential of XRP's TVL growth given its increasing adoption and partnerships within the finance industry.
