Cryptocurrency forecasting: Will Ethena's (ENA) price break past $1 without the backing of major investors?
In the past month, Ethena (ENA) has experienced a significant price surge, gaining 143%. This upward trend continues as the cryptocurrency has also seen a year-to-date increase of 152%.
The recent price surge of Ethena can be attributed to a combination of strategic community incentives, exchange listings, partnerships, technological innovation, and strong market fundamentals. These factors have contributed to a positive outlook, with predictions indicating continuing bullish momentum and potential for further gains.
One of the key factors driving the recent ENA price increase is strategic token distribution. Ethena Labs distributed 750 million ENA tokens via airdrop, representing 5% of the total supply, to early users. This move expanded the market capitalization and demand for ENA. Pre-launch campaigns such as the Shard Campaign also engaged a large number of participants, establishing a strong foundation for ENA's growth.
ENA was listed on major cryptocurrency exchanges like MEXC, which significantly increased liquidity, accessibility, and attracted a wider investor base.
The broader optimistic cryptocurrency market environment has also enhanced investor confidence. Ethena’s strategic partnerships with prominent DeFi projects have improved its ecosystem, drawing additional users and liquidity, thus heightening token demand.
Ethena’s unique “Internet bond” concept and Delta hedging mechanism aimed at stabilizing its synthetic stablecoin USDe tackle the stablecoin “impossible triangle” challenge—price stability, capital efficiency, and decentralization. This innovation has attracted capital inflows and attention from investors.
Ethena’s Total Locked Value (TVL) surpassed $10 billion, and open interest hit record highs, signaling large capital inflows and enhanced investor interest. Additionally, the circulating supply of USDe also crossed $10 billion.
A golden cross—a bullish technical pattern where the 50-day EMA crosses above the 200-day EMA—formed on ENA’s daily chart, historically preceding sustained rallies. Other indicators like RSI near but below overbought territory and positive MACD trends support continued upward momentum.
The Ethereum market's influence has also played a role in ENA's price action, as Ethereum rising above $4,000 improved overall sentiment for Ethereum-based projects like Ethena.
At press time, Ethena is trading at $0.8086, up 9.05% in 24 hours. The Parabolic SAR has dipped below price candles, suggesting buyers are in control. Ethena surged by 30.98% over the past week, reaching a 7-month high of $0.855.
The spot market saw a positive Buy-Sell Delta of 8.33 million, a slight increase from the previous day's 8.09 million. Retail traders have dominated recent spot activity. Ethena recently bounced off its recent low of $0.55 and successfully defended the $0.60-support level.
The on-chain profitability at the time of writing seemed to reinforce this, as the ratio of transactions in profit to loss stood at 4.16, with 75.38 million transactions in profit versus 18.08 million in loss. Santiment’s data showed Ethena logging positive Price DAA Divergence for seven straight days, which is a sign of strengthening fundamental demand.
The retreat of whales in both the Spot and Futures markets indicates less speculative activity from large entities. The Stochastic RSI surged to 85.37, further confirming the buyers' presence.
The asset's strength has been attributed to rising network activity, positive sentiment, and steady capital inflows. Despite the price uptick, Ethena whales are yet to show up across the market.
In summary, Ethena's price surge results from strategic token distribution, exchange exposure, robust DeFi partnerships, innovative technology, favorable market conditions, and strong technical signals. Current expert analysis forecasts potential further gains, highlighting a probable extended bull run in the near term.
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