Polygon (matic) 
Ethena Token Stabilizes After Spark Announcement, But Risks Remain
The Ethena token has recovered from a sharp decline, rising to $0.83 on January 14. This rebound comes after Spark, a major player in the decentralized finance (DeFi) industry, announced plans to integrate Ethena’s USDe and sUSDe stablecoins into the Spark Liquidity Layer.
Spark’s Integration and Ethena’s Market Position
Spark’s integration is expected to increase the allocation of stablecoins to Ethena, with plans to reach $1.1 billion. According to a statement, “We see USDe as an incredibly powerful primitive for the best DeFi applications and builders today. Ethena’s integration with Spark Liquidity Layer represents a major move towards enhancing the accessibility of USDe and sUSDe, allowing more users to benefit from crypto-native assets.”
Ethena has emerged as a significant player in the crypto sector, with its USDe stablecoin boasting a market cap of over $5.79 billion, making it the fourth-largest in the space. Unlike Tether and USDC, USDe offers holders a monthly yield, currently at 11%. Ethena’s staked version, sUSDe, has over $4.1 billion in assets.
Technical Analysis and Price Outlook
Despite the rebound, the Ethena token remains 35% below its highest level this year and has formed a risky chart pattern, suggesting a potential further retreat. The daily chart shows that ENA has been in a strong downward trend over the past few weeks, dropping from a high of $1.3085 earlier this year to the current $0.8345.
The token has fallen below the 50-day and 25-day exponential moving averages, signaling that bears remain in control. Ethena has formed a double-top chart pattern at $1.3085, with the neckline at $0.8455. A double-top is a widely recognized bearish indicator.
Given this pattern, ENA is likely to continue declining as sellers target the next psychological level at $0.50 — about 40% below the current price. However, a move above the key resistance level at $1 would invalidate the bearish outlook.
For investors and traders, it is essential to monitor the Ethena token’s price movement and chart patterns to make informed decisions. Keep up-to-date with the latest news and analysis on Global Crypto News for more insights into the world of cryptocurrencies and finance.
