Ethena (ENA) has recently shown signs of recovery, rising to $0.83 on January 14, after a significant dip to $0.7255 earlier this week. Despite this rebound, the token remains 35% below its peak value this year, and its chart continues to suggest the possibility of further price decline.
The recent volatility in Ethena’s price follows an announcement by Spark, the 13th-largest decentralized finance (DeFi) player by assets, that it would integrate Ethena’s USDe and staked USDe (sUSDe) stablecoins into its Spark Liquidity Layer. As part of the partnership, Spark plans to allocate up to $1.1 billion to Ethena, fueling market speculation about the long-term impact of this collaboration.
Ethena has emerged as one of the dominant players in the crypto space, with its USDe stablecoin holding a market cap of over $5.79 billion, making it the fourth-largest stablecoin in the market. USDe offers holders a monthly yield of 11%, a unique feature compared to major stablecoins like Tether and USDC. The staked version, sUSDe, holds over $4.1 billion in assets.
On the other hand, Spark is also a notable player in the DeFi industry, with its USDS stablecoin boasting a market cap of $6.13 billion. The integration with Ethena’s stablecoins is expected to bolster the liquidity offerings for both platforms, but this has not prevented Ethena from facing downward pressure in the short term.
Also Read: Arthur Hayes Deposits $6.46M in Ethena (ENA): Market Braces for Price Turmoil
Technically, ENA’s chart shows a concerning trend, with a steep decline from a high of $1.3085 to its current price. The formation of a double-top pattern, coupled with the breach of the 50-day and 25-day exponential moving averages, signals that bearish momentum could continue. If this pattern plays out, Ethena could face further declines, potentially testing the psychological level of $0.50. However, a sustained rally above the $1 resistance could alter this bearish outlook and signal a potential reversal for ENA.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
