Spark integrates Ethena USDe as ENA forms a risky pattern

by

After experiencing a significant drop, the value of the Ethena token has steadied following the news from Spark about integrating a stablecoin.

On January 14th, Ethena (ENA) experienced an uptick to reach $0.83, bouncing back from its weekly low of $0.7255. However, despite this rebound, the token still hovers 35% lower than its peak for the year. The current price movement has formed a questionable chart pattern, indicating a possible additional decline might follow.

In simpler terms, Spark, a significant player in the decentralized finance world (ranked 13th by asset size), has decided to incorporate Ethena’s USDe and sUSDe stablecoins into its Liquidity Layer. This move involves assigning stablecoins to Ethena, with ambitions to boost this assignment to a value of $1.1 billion.

We view USDe as an extremely potent foundation for top DeFi apps currently in use. Integrating USDe and sUSDe with Ethna’s Spark Liquidity Layer significantly boosts accessibility, enabling a larger number of users to reap the benefits of crypto-native assets.

As an analyst, I’ve observed that Ethena has solidified its position as a major force within the crypto industry. The market cap of its USDe stablecoin surpasses $5.79 billion, ranking it fourth in the sector. Unlike Tether and USDC, USDe provides holders with a monthly return, currently standing at 11%. Moreover, Ethena’s staked version, sUSDe, boasts over $4.1 billion in assets.

In addition to being well-known within the field, Spark provides an avenue for users to hold and lend stablecoins. Among these, its USDS stablecoin boasts a market capitalization of $6.13 billion, placing it as the third most substantial in the industry.

Ethena price technical analysis

As a researcher examining the data, I’ve noticed that the day-to-day graph indicates a substantial decrease in ENA’s value over the last few weeks. The trend has been significantly downward, with the price plummeting from a peak of $1.3085 earlier this year to its current level of $0.8345.

The token’s value has dropped beneath both its 50-day and 20-day exponentially weighted moving averages, suggesting that bearish forces continue to dominate the market.

Notably, Ethena’s price has developed a double-top chart formation around $1.3085, with the neckline situated at $0.8455. The double-top pattern is a commonly used bearish signal.

As a crypto investor, I’m seeing a consistent pattern that suggests ENA might keep falling. Sellers seem to be aiming for the next significant psychological barrier at $0.50, which is approximately 40% lower than its current price. However, if ENA manages to break through the crucial resistance level at $1, it could potentially flip the bearish trend on its head.

Read More

2025-01-14 18:11