The Ethena price has dropped 7% to trade at $0.7571 as of 6:50 am EST, to a trading volume that soared 53% to $178 million.
This plunge comes despite its recent partnership with Aave, a fully decentralized, community-governed protocol.
Excited to share one of the most important DeFi integrations for USDe adoption to date
👻 @ethena_labs x @aave 👻
Read below for details on the partnership 🤝 pic.twitter.com/CArLzNRPZz
— Ethena Labs (@ethena_labs) June 6, 2024
However, the partnership came in handy for the platform users as they could deposit USDe and loop their position in with other stablecoins on Aave.
Additionally, Ethena users can deposit stETH, weETH, ETH, and WBTC on Aave to borrow stablecoins into Ethena USDe or sUSDE.
Ethena’s Stablecoin (USDe)
Ethena’s synthetic U.S. dollar stablecoin USDe, which offers yield earnings on holdings, has exceeded the $3 billion threshold. As of the time of writing, USDE’s market valuation is approximately $3.40 billion.
Further, after surpassing the $3 billion mark, USDe is now the fourth-largest stablecoin.
The ethena portal shows the current annual percentage yield (APY) for sUSDE at 27.5%, attracting its user base.
The new participants still need an invite code to join, with over 212K users leveraging the ethena application at the time of writing.
Ethena is a synthetic dollar protocol founded on Ethereum. It aims at revolutionizing the insurance sector by offering decentralized insurance solutions through blockchain technology.
Ethena Price Plunges 20% In A Week
The Ethena price prediction signals that ENA is moving bearishly. It has dipped 7% in the past 24 hours and 20% in the past week. At the time of writing, ENA is trading at $0.7561, with a market capitalization of over $1 billion.
ENA Prediction Statistics Data
- ENA price now – $0.7571
- ENA market cap – $1.14 billion
- ENA total supply – 15 billion
- ENA circulating supply – $1.52 billion
- ENA Coinmarketcap ranking – #73
The Ethena price has displayed a series of lower highs in the four-hour time frame, signaling bearish sentiment in the ENA market. Ethena’s price is on a strong bearish trend, trading below the 50-day and 200-day Simple Moving Averages (SMAs).
Further, the Relative Strength Index (RSI) on the 4-hour chart indicates intense selling pressure, with the sellers having the upper hand. The RSI has dropped below the 30-oversold region, currently at 28, tilting the odds in favor of the bears.
Worsening the outlook for the Ethena price, the Moving Average Convergence Divergence (MACD) is not only in negative territory but also below the signal line (orange band). This means that the long-term moving average is above the short-term moving average, further intensifying the bearish momentum in the Ethena price.
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Ethena Price Prediction
The Ethena price analysis shows that ENA is on a bearish trend. If the bears continue this trend, ENA may retrace further to the support zone around $0.739, acting as a cushion against downward pressure.
On the other hand, the bulls may take the current downtrend as the perfect position to buy, with the RSI opening up a space for a buyback.
In such a scenario, the bulls could push the token towards the upper boundary of the symmetrical triangle. They are currently targeting $0.0935, which coincides with the 50-day SMA.
Bottom Line
Ethena is among the top altcoins that many crypto enthusiasts believe will lead the transformation of financial factors through Decentralized Finance (DeFi). Despite its recent dip, many investors remain confident in Ethena’s potential to improve the financial sector through decentralization.
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