Strong Breakout in Ethena Crypto: Will the Price Double From CMP?

• The Ethena price has advanced by 20% in the last 24 hours.
• Ethena’s liquidity has been very high based on its market cap.

Ethena, created by Ethena Labs and founded by Guy Young, is a synthetic dollar protocol on Ethereum. It offers stablecoin issuance and blockchain-based savings through its USDe stablecoin and Internet Bond. 

Also, users earn ENA tokens by staking BNB and FDUSD on Binance Launchpool, enhancing DeFi utility and stability.

The spot volume and the derivatives volume for the Ethena crypto have witnessed a considerable surge in the last 24 hours from the time of writing.

It was followed by a surge of 181% in the trading volume of crypto, resulting in a traded value of $497.442M. Moreover, the higher volume in the crypto results in huge liquidity followed by a volume/market cap ratio of 37.58%.

Ethena Crypto Derivatives Witnessed Strong Activity

The value of the derivatives trading volume over the last 24 hours has been $778.60M. That was further followed by a surge of 28% in the open interest of the crypto.

The advance in the trading volume of the crypto showed a rise in the engagement of the number of traders and investors in the crypto. 

The liquidation data further showed that bulls ruled over the price, resulting in a higher short liquidation of $973.41K. Also, the long liquidation for the crypto was $249.33K.

What Can Ethena Price Prediction Be Based On Technical Analysis?

A recent breakout above the falling wedge pattern followed by a strong volume can be seen on the chart of ENA crypto.

The price of the ENA crypto was trading inside a falling wedge pattern for more than 6 months, and the price broke out above the pattern within 24 hours of writing. This further indicated that the crypto might be available at a best-buy price. 

The candlesticks on the 4H chart of ENA/USD show strong bullish momentum as a Marubozu candlestick is formed.

ENA/USD Chart by TradingView

The 50-day and the 200-day EMAs were trading in a death cross, while the crypto price broke above the 50-day EMA and was currently trading at a 200-day EMA. 

If the price continues to rise further, the EMAs might result in a golden cross, but the recent scenario of the EMAs does not support the price action.

The MACD, on the other hand, has become strongly bullish as its metrics have broken above the zero level. It was trading in bullish territory when writing. The MACD and the signal line also are trading in a bullish cross.

The RSI also follows a bullish cycle, breaking above the 14-day SMA line. The RSI value also has advanced to the overbought zone and has sustained to the higher levels.

Summary

Ethena (ENA) has surged 20% in 24 hours, driven by high liquidity and increased trading volumes. 

Breaking above a six-month falling wedge pattern with strong bullish momentum, technical indicators like MACD and RSI support a potential price rise. The price may double from its current market position.

The crucial support for the ENA crypto is $0.660 and $0.690, while on the higher levels, it might face resistance at $1.22 and $1.520.

Disclaimer

This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.