Ethena (ENA) Price Prediction: Why A 58% Bullish Reversal for ENA Could Be Underway

Highlights:

Ethena establishes support at $0.483 as selling volumes drop
Buyers entering the market driven by the growing adoption of Ethena’s USDe
Bullish sentiment across the market could help trigger a bullish reversal

Ethena (ENA) continues its bearish trend that started on June 4. In the past 24 hours, Ethena has dropped by 2.64%, and at the time of writing, it is trading at $0.483. Despite this sustained month-long correction, there are signs that Ethena could be on the verge of a bullish reversal.

Declining Trading Volumes and Establishing Support, A Bullish Signal

A closer look at the trading charts reveals that Ethena’s trading volumes have declined since June 25, coinciding with the broader market sending bullish signals. This decline in selling volumes has allowed Ethena to establish a support level of $0.483. If this support holds and a bullish reversal occurs, the critical level to watch would be $0.763, now a crucial weekly resistance level.

Ethena price chart — **Source: TradingView**

Breaking this resistance would signify the completion of the bullish reversal and the beginning of a new uptrend. If the $0.763 resistance is breached, Ethena could rally to a high of $1.027 in the short term.

Conversely, if selling volumes increase and the $0.483 support is broken, Ethena could drop to a low of $0.40 in the short term. However, the odds are higher that Ethena could be on the cusp of a bullish reversal. This optimism stems from the declining selling volumes, indicating that many investors believe the bottom is in.

Broader Market Supports An ENA Reversal

This sentiment is further enhanced by the broader market showing signs of a rebound. Bitcoin, a key determinant of market direction, has been pushing higher since hitting a low of $59,800 on June 24. Today, Bitcoin is trading at $62,800 and continues to rise. As Bitcoin’s momentum grows, Ethena could follow the broader market direction, as is often true with altcoins when Bitcoin turns bullish.

Positive News Driving Optimism

Adding to the optimism are several positive developments regarding Ethena’s USDe stablecoin.

Integration With BitGet Global

On June 20, Ethena announced a significant integration with Bitget Global, a major cryptocurrency exchange. This integration allows over 25 million users to use USDe as margin collateral for coin-margined perpetual and futures, enjoy zero-fee spot trading on the USDe/USDT pair, and access USDe in the exchange’s earn section. This development significantly enhances the utility and adoption of USDe, positioning it as a key player in the stablecoin market.

Excited to share one of the most important USDe integrations to date

More than 25m users at @bitgetglobal can now enjoy:

– USDe as margin collateral for coin-m margined perps & futures
– Zero fee spot trading on the USDe/USDT pair
– USDe in the earn section pic.twitter.com/iPCcBS0vVt

— Ethena Labs (@ethena_labs) June 20, 2024

Collaboration With Symbiotic Finance

Similarly, on June 25, Mellow Protocol announced a new collaboration between Ethena Labs and Symbiotic Finance. This partnership involves opening two new Long-Term Retention (LRT) vaults and appointing a new risk curator. Mellow Protocol further incentivizes participation by offering rewards for staking $ENA. These rewards include a 30x ENA multiplier, Symbiotic points, Mellow points, and potential future LayerZero Request for Proposal (RFP) allocations if awarded to Ethena. These incentives are designed to boost the adoption and utility of Ethena’s native token, ENA, and further integrate it into the decentralized finance (DeFi) ecosystem.

Mellow Protocol brings to life the new collaboration between @ethena_labs and @symbioticfi!

As part of this engagement, we are opening two new LRT vaults and announcing a new risk curator.

Let's get to the details! pic.twitter.com/L9lXjXb2QO

— Mellow Protocol (@mellowprotocol) June 25, 2024

These positive developments point to Ethena’s growing importance in the stablecoin market. As the adoption of USDe increases and selling volumes thin out, a clear support level is forming at $0.483. The broader cryptocurrency market’s recovery, spearheaded by Bitcoin’s upward trajectory, adds to the potential for a bullish reversal for Ethena.

Market Dynamics and Future Projections

Ethena’s ability to hold its support level at $0.483 is crucial in these market dynamics. Should the market continue to exhibit bullish tendencies, and if Ethena can break past the $0.763 resistance, it would likely enter a new growth phase. This breakout could see Ethena’s price reaching $1.027 in the short term, offering significant upside potential for investors.

Overall, ENA is at a pivotal point. With the broader market showing signs of recovery and several positive developments regarding its USDe stablecoin, the odds favor a bullish reversal. Investors will closely watch the $0.763 resistance and $0.483 support levels to gauge Ethena’s next move. If the positive momentum continues, Ethena could embark on a new upward trajectory, offering promising growth opportunities soon.