Ethena (ENA) approaches $1 as TVL jumps over $1 billion and momentum accumulates. Golden Cross and bullish signals refer to an even higher rise. Buybacks, whale activity, demand for promoting USDE growth.
Esena’s native token Ena has been rising sharply over the past few days, with traders taking notes.
Additionally, the protocol’s locked total has skyrocketed above $10 billion, which adds new momentum to the rally.
Ethena TVL surges beyond $1 billion
According to Defillama data, Ethena’s TVL jumped to around $10.979 billion. Protocol revenues have also risen sharply, with the weekly USD inflows rising significantly over the last few weeks.
Furthermore, Ethena’s synthetic dollar USDE is currently one of the largest stub coins, with an estimated market capitalization of $10.2 billion.
In particular, the USDE’s high APY and its cross-chain expansion brought together liquidity in both retail and institutional.
Technical analysis shows bullish execution
From a technical analysis perspective, the chart matches in favour of the Bulls after the classic golden cross has been formed, with 50-day EMA crossing beyond the 200-day EMA.
Additionally, momentum indicators support additional benefits with increased relative strength index (RSI) and the arrival of bullish moving average convergence divergence (MACD) crossovers.
In addition to bullish scenarios, price action also shows higher highs and rising channels, which traders consider to be durable bullish structures.
However, some attention has been paid to ensure that RSI has entered the area where it was acquired.
Token buybacks strengthen bullish cases
Additionally, Ethena Tokonemics now includes a $260 million repurchase fund, covering approximately $5 million in daily repurchases.
Sustainable buybacks are beginning to reduce circulation supply and add rarity premiums to the ENA.
Additionally, planned unlocking tokens and future rate switching could further alter supply dynamics, and these mechanisms could potentially return more value to the holders.
Whales, Volume, and Institutional Interests
Furthermore, on-chain analysis shows an increase in the accumulation of whales with large addresses holding a significant portion of the supply.
It also suggests an increase in facility influx into derivatives amid growing open interest, suggesting an increase in expert participation.
Additionally, spot and futures liquidity has expanded, with recent daily volumes surged into the billions of dollars range.
Important Ecena price levels to watch
The market has established $0.75 as key support, and traders are looking closely at this level.
Meanwhile, immediate resistance is in bands between $0.84-$0.87, and a critical break above these levels could clear the path to $1.00.
The upward targets cited by analysts include $1.02 and $1.18 if momentum continues, potentially bringing the expansion rallies to a higher level.
However, traders should remember that violations below $0.68 increase the likelihood of deeper corrections.
Additionally, traders should monitor backcadence, exchange listing news, and USDE adoption indicators as key catalysts.
Additionally, on-chain whale movements and derivatives should be monitored for signs of allocation shifts.
