Key Highlights
A week prior, Ethena successfully surpassed a resistance level that had been in place since February. The USDe stablecoin within the Ethena ecosystem is experiencing substantial capital inflows, driven by the pursuit of yield. The announcement regarding Ethena’s first treasury company, specifically focused on stablecoins, has further fueled positive sentiment.
Ethena (ENA)
demonstrated a 17.6% increase over the last week. However, at the time of this report, the price has seen a correction of 10.45% in the preceding 24 hours.
This price decrease occurred after ENA encountered resistance at $0.67, a price point previously observed in early February.
Analysis of the daily price chart indicates a strong bullish trend for the token.
After trading below the $0.485 resistance for several months, ENA decisively broke through this level, transforming it into a support level towards the end of July. The past week’s impressive performance can be attributed to this key shift from resistance to support.
The On Balance Volume (OBV) has been steadily increasing throughout July, reflecting consistent buying pressure on ENA.
However, the Money Flow Index (MFI) has shown a developing bearish divergence recently. This divergence provides a possible explanation for the retracement, suggesting that the price correction may not be finished.
Given Bitcoin’s (BTC) drop below $115,000, the broader cryptocurrency market may experience further declines. Do on-chain metrics suggest Ethena has reached a temporary peak?
ENA Treasury Initiatives and Analyst Confidence
On July 25th, crypto tracking platform
Lookonchain
reported that
Arthur Hayes
, co-founder of BitMEX, acquired 2.16 million ENA tokens, valued at $1.03 million at the time of purchase. Data from
Arkham
reveals that he currently holds 7.76 million ENA, with a total value of $4.59 million.
The newly established Ethena treasury, known as
StablecoinX
, has announced plans to implement a “multi-year treasury strategy” focused on accumulating ENA reserves.
This development is widely anticipated to be
highly favorable
for Ethena’s long-term prospects. A
$1 price target
may be realistic.
Source:
Glassnode
July saw a significant increase in daily active addresses. This surge in activity might indicate profit-taking by holders as ENA surpassed recent highs.
Source:
Santiment
However, the supply distribution analysis doesn’t reveal widespread selling pressure from existing holders. There were no significant selling trends across various holder categories, which is a promising sign.
In a
post on X
, crypto analyst
Ali Martinez
highlighted that larger investors (“whales”) continue to accumulate ENA tokens. The number of addresses holding between 100,000 and 1 million ENA increased from 514 to 574. Smaller addresses also continued to increase their Ethena holdings.
Overall, the available evidence indicates the potential for a continued ENA rally. However, traders and investors should be aware of potential short-term pullbacks and price fluctuations.