Ethena has broken out of a rare bullish pattern on the one-day charts and could see gains of over 65% from the current price.

Over the last seven days, Ethena — best known for the USDe stablecoin — rose 24.4%. The crypto asset’s market cap surpassed the $1 billion mark on Oct. 14, now up 200% from its lowest point in September, sitting at $1.14 billion. Its daily trading volume hovers over $318 million.

Technical Analysis Points to Further Upside

According to analysts, Ethena has broken out of multiple patterns on the 1-day chart, which points to further upside. An anonymous trader, CryptoBull_360, noted that ENA has broken out from an inverse head and shoulders pattern, a rare pattern that signals a major bullish reversal that could further fuel the ENA rally. Moreover, it also rose above the upper side of a broadening wedge pattern that connects the highest swings since April 10.

The analyst sets a bullish target for ENA at $0.68, which is up 65% from its current levels, provided that Bitcoin continues to see positive momentum.

Market Sentiment and Predictions

Other commentators echoed similar bullish sentiments, with MisterSpread predicting ENA to hit $0.52 in the short term as long as it holds above the support level at $0.42.

ENA’s price rally also coincided with a jump in futures open interest. According to CoinGlass, open interest in the futures market hit a high of $227 million, up from last week’s low of $137 million.

Whale Activity and Smart DEX Traders

Previously, whales have also turned their attention towards the token and were seen accumulating the crypto throughout the past week. Smart DEX traders, known for consistently executing profitable swaps on decentralized exchanges, grabbed over 2.25 million ENA tokens over the past week, valued at $932.5K, demonstrating their confidence in the token’s potential growth.

Integration Proposals and Future Plans

Among other catalysts is Ethena’s recent proposal to integrate its liquidity and hedging system into Hyperliquid, a decentralized exchange for perpetual trading. The proposal, currently under review by the Ethena Risk Committee, suggests moving a portion of Ethena’s hedging flow on-chain to Hyperliquid, enhancing transparency and reducing counterparty risks.

Additionally, the proposal includes adding the USDe stablecoin to Hyperliquid’s Layer 1 platform upon the launch of the EVM mainnet, further expanding its DeFi integrations.

At press time, ENA was exchanging hands at $0.403, according to recent data.

#BearMarket #AI

Post Views: 3