Ethena Token Price Rises Amid Improved Crypto Sentiment

The Ethena token has seen a substantial price increase over the past three days, reflecting an improved sentiment in the cryptocurrency market. Ethena, widely known for its USDe stablecoin, surged to $0.4676, marking its highest point since July 24. This represents an impressive 130% jump from its lowest level this year.

Crypto Fear and Greed Index Shows Improvement

The rise in Ethena’s price coincides with a notable improvement in the crypto fear and greed index, which has climbed from last week’s fear zone of 38 to a neutral point of 50. This positive shift in sentiment has also seen Bitcoin soaring to $67,000, while Ethereum and Solana have risen to $2,650 and $160, respectively. Historically, altcoins tend to perform well when both Bitcoin and the crypto fear and greed index are on the rise.

USDe Stablecoin Stability Increases

Ethena’s rally also aligns with decreasing concerns over the USDe stablecoin de-pegging this year. The likelihood of the stablecoin losing its peg has dropped to 4%, down from 16% a few months ago. Unlike traditional stablecoins pegged to the U.S. dollar, USDe maintains its $1 peg through automated and programmatic delta-neutral hedges on its backing assets. Currently, the USDe circulating supply is valued at over $2.4 billion.

Advantages of USDe Over Other Stablecoins

Unlike popular stablecoins such as Tether and USD Coin, USDe offers yields to its holders, with an annual percentage yield (APY) of 8%, which is significantly higher than U.S. government bonds.

Ethena’s Ecosystem and Developer Moves

Despite Ethena’s price rebound, the total value locked (TVL) in its ecosystem has continued to decline, dropping from a year-to-date high of $3.6 billion to $2.4 billion. However, the developers have made several strategic moves recently. Last week, they announced plans to invest $46 million of the reserve fund in tokenized assets. Additionally, Ethena has garnered backing from major players such as BlackRock and Securitize for its new stablecoin, UStb.

Ethena Price Analysis

The daily chart indicates that the ENA price bottomed at $0.20 in September and has since rebounded by over 125% to $0.462. It has successfully surpassed the critical resistance point at $0.4260, which was its highest swing on September 30 and the neckline of a double-bottom pattern. Furthermore, ENA has rallied above the 50-day moving average, and the Money Flow Index indicator has shown an upward trend. Therefore, it is likely that the token will continue to rise, with bulls targeting the key resistance level at $0.5150, its highest swing on July 24.

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