ENA Drops 8% and 2.0 Meme Coin’s Potential Surge
The price of Ethena (ENA) fell by over 8% in the past day, and it’s currently trading at $0.9421 as of 2:25 a.m. EST.
This drop occurred as investors started selling off some of their holdings to lock in the recent gains. In response to the fluctuating APY, Ethena Labs has now made it possible to use Bitcoin as collateral for USDe.
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After Ethena’s integration onto the Ethereum network on February 19, it offered a 27.6% APY for staked USDe. This APY briefly rose to 113% on March 5 but has now decreased to 7.15%.
Ethena’s price dynamics and technical signals
Ethena’s price has dropped slightly a few times in the last day, creating a downward trend. A decreasing triangle pattern appears on Ethena’s hourly chart, with the triangle’s bottom support level at $0.895. This type of pattern often hints at a potential price drop.
If Ethena’s price dips below the $0.895 mark in the next half-day or so, it might fall even further to the $0.726 level. But if we see the price rise above the downward-facing triangle boundary in the next hour, it might indicate that the downward trend isn’t going to continue.
In a different situation, investors could try to boost ENA’s price beyond the critical resistance level of $1.201. It could create a stable base for Ethena’s price to achieve a new all-time high in the coming days.
After the unprecedented growth or USDe since launch, Ethena hedges represent ~20% of ETH open interest as of today
With $25bn of BTC open interest readily available for Ethena to delta hedge, the capacity for USDe to scale has increased >2.5x pic.twitter.com/glyvBQFEwj
— Ethena Labs (@ethena_labs) April 4, 2024
The technical data on ENA’s hourly chart shows some different signals. In one way, it looks like ENA’s recent downward trend is beginning to ease. It is indicated by the Moving Average Convergence Divergence (MACD) Histogram nearing the zero level.
On another note, the Relative Strength Index (RSI) shows sellers are gaining the upper hand as the RSI falls below its Simple Moving Average (SMA) line.
This scenario occurred when the SMA recently declined the RSI. While Ethena, a new player in the market, is trying to establish itself, the ‘meme’ coin Sponge V2 aims to emulate the impressive growth it exhibited in the 2023 bear market.
Sponge V2: anticipating another crypto surge
In 2023, Sponge turned the crypto world upside down. During a season when the rest of the market was in a downturn, it increased its value 100 times. After its launch, the value of this meme coin soared, driving the crypto’s market cap to a high of $100 million.
Sponge’s sudden and fast-paced growth was unexpected, leaving many investors without the chance to benefit from its remarkable price increase last year. Therefore, the team that created this popular meme coin is offering investors another opportunity to invest early before a potential second surge in price with the debut of Sponge V2.
The Sponge team is planning several improvements to boost the meme coin’s performance. These include introducing a play-to-earn racer game, launching a profitable staking program, and featuring it on various important exchanges.
Don’t forget, #SPONGERS! 🧽💦#SpongeV2 is bringing exciting utility through our upcoming #P2E game! 🔥
Get ready to earn $SPONGE tokens by playing the game and ranking on the leaderboard.
Stay tuned for more info! 🚀#MemeCoin #Crypto #Alts #100x pic.twitter.com/5aaLxGz8N1
— $SPONGE (@spongeoneth) March 22, 2024
The Sponge token (SPONGE) has also been moved to the Polygon blockchain, known for its scalability and cost-effectiveness.
Sponge’s success rested largely on the buzz around meme coins. But they knew this hype wouldn’t last forever. So, the team behind the meme coin launched a play-to-earn racing game. This game will be available in both paid and free versions.
Users can use the SPONGE token as currency in the paid version of the game and earn rewards in the form of this meme coin. This not only helps the cryptocurrency tap into the growing world of blockchain gaming, but it also provides unique functionality that sets SPONGE apart from many other meme coins.
Considering the upcoming additions to the SPONGE ecosystem, the price of this meme cryptocurrency could potentially multiply by a factor of 100 in the future.
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Joshua Downes
Joshua Downes is an experienced journalist and editor specialising in finance, trading, cryptocurrency and online betting. Over the last eight years, he has written for numerous publications and media outlets, both print and online. These include Trading-Education, Wetten, GamblingGuy, BitReviews, Industry Slice, and Gulf Business. With a BA in journalism and an MA in English, Joshua aims to provide informative and highly readable articles, making even the most complex of financial concepts easily understandable for the average reader. Joshua is currently pursuing professional qualifications in finance and also has extensive knowledge of the gambling industry, having spent four years working in operations for Gala Coral.
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