Why Ethena is pumping: Could it surge by 35%?

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As a seasoned crypto investor with over a decade of experience under my belt, I must admit that the recent surge in Ethana (ENA) has caught my attention. Having witnessed countless market cycles and seen coins rise and fall, I have learned to read between the lines and spot trends early on.

Ethena experienced a robust recovery following a surge in its assets to an all-time peak, largely due to President-elect Donald Trump’s purchase of the token from World Liberty Financial (WLFI).

The ENA token reached an all-time high of $1.20 since April 14, marking a 525% increase from its lowest point this year. As a result, its market capitalization exceeded $3.36 billion.

Following the acquisition of 509,955 ENA tokens worth more than $589,000 by World Liberty Financial, Ethena experienced a significant increase in value. This company, which has previously raised over $72 million in a token sale, also holds Ethereum (ETH), Bitcoin, Tether, USD Coin, Chainlink, and AAVE according to Nansen data.

WLFI is backed by Justin Sun, the founder of Tron (TRX).

Additionally, as the total value locked within Ethena’s ecosystem surged past $5.84 billion (as reported by DeFi Llama), Ethena followed suit, leaping into action as well. This rapid increase has propelled USDe, its stablecoin offering yield earnings, to rank third in size, trailing only Tether and USDC. In just the last 30 days, USDe’s valuation has experienced a significant boost of over 83%.

The cost of ENA has surged as well, due to the decreased likelihood that the USDe stablecoin will deviate from its parity with the dollar in 2024. According to Polymarket’s analysis, there is now only a 2% probability that the token will drop below 90 cents, similar to how Terra USD fell in 2022.

There are worries about USDe, similar to UST, because it doesn’t have any real-world currency backing. Unlike traditional coins, USDe operates as an algorithmic token and offers a high yield of 27%. Its value stability is maintained through a strategy known as hedging the delta of assets during mining.

Ethena price analysis: can it hit an all-time high?

Over the last several months, the graph for daily ENA prices indicates a robust upward trajectory. Starting at $0.20 in September, it’s climbed all the way up to $1.2, which is its highest point since April.

As a crypto investor, I’ve noticed an encouraging trend: My chosen coin is consistently sitting above both its 50-day and 25-day Exponential Moving Averages. This suggests to me that the bulls are currently holding the reins, indicating potential positive momentum in the market.

Ethena seems to be shaping a potential Cup and Handle chart pattern, with the peak of the cup at around $1.5210. A Cup and Handle (C&H) pattern is often seen as a continuation signal in technical analysis.

Consequently, it seems probable that the value of the coin will probably keep increasing, with investors aiming for approximately $1.5210, a 33% hike from its present value. If the price falls below the support at $0.90, however, this bullish outlook may be called into question.

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2024-12-15 16:42