Ethena price has been on a remarkable upward trajectory this week, surging by an impressive 40.03% overall and 11.59% in the last 24 hours alone. Currently trading at $0.8406, this surge in price coincides with Ethena’s Total Value Locked (TVL) hitting an all-time high of $10 billion. Additionally, the platform has achieved a major milestone with its synthetic dollar, USDe, becoming the 3rd largest stablecoin by market capitalization.
One of the key factors contributing to the price surge is the daily buybacks of ENA tokens worth $5 million. These buybacks are effectively reducing the circulating supply of ENA, creating a sense of scarcity and driving up demand. Furthermore, addresses holding between 100,000 to 1 million ENA tokens have increased by 12% in July, now controlling approximately 30% of the total token supply.
The recent influx of capital into the protocol, as reflected by the record TVL, indicates a growing confidence and adoption of Ethena’s DeFi products. This capital inflow has closely correlated with the price recovery of ENA from multi-month lows, suggesting that investor sentiment is playing a significant role in driving price action.
In terms of price analysis, ENA experienced a breakout on August 10th when it surged by 13.7% from $0.64 to $0.7277, breaking out of a bullish flag pattern. The rally has since continued, reaching a high of $0.8493, with the current price consolidating around $0.84. Technical indicators suggest strong momentum, with the RSI-14 at 74.76 indicating nearing overbought levels, and the MACD confirming a bullish crossover.
Looking ahead, key upside targets for ENA are at $0.8741 and $1.02. However, a significant amount of ENA tokens were moved to exchanges on August 9-10, which could introduce near-term volatility. On the downside, a close below $0.7046 could trigger profit-taking towards lower support levels at $0.5638 and $0.4764.
In conclusion, the surge in ENA price can be attributed to various factors such as strong TVL growth, USDe’s stablecoin milestone, buybacks, and whale accumulation. As the market continues to evolve, it will be interesting to see how these dynamics play out and where the price of ENA heads next.