Ethena [ENA] has made a significant announcement with the formation of a new Ethena treasury company, StableCoinX Inc. The company has successfully raised $360 million to acquire ENA and plans to list their stock on Nasdaq under the symbol USDE. This move has sparked a bullish trend in the market, with the price of ENA climbing past the $0.5 resistance level.
Starting from Monday, $5 million worth of ENA will be purchased daily over the next six weeks. This strategic treasury approach by StableCoinX focuses on long-term capital allocation, which is expected to further drive the rally in the coming weeks. The Ethena Foundation retains the right to veto any sales of ENA by StableCoinX, ensuring a focus on accumulation rather than selling tokens.
The market response to this announcement has been positive, with the A/D indicator surpassing a local high from July and the CMF indicating strong demand for Ethena. The daily trading volume has also been consistently above the 20-day moving average, showcasing significant capital inflow into the market. The Awesome Oscillator and market structure are both indicating bullish momentum for ENA.
After meandering between $0.5 and $0.25 since April, ENA has finally broken free from its consolidation phase and is now on a bullish trend. The 1-week liquidation heatmap suggests a potential retracement to the $0.45-$0.47 zone, which coincides with resistance levels from February. This could present a buying opportunity for investors looking to enter the market.
It is important to note that potential volatility around Bitcoin could impact ENA’s price movement. Investors should exercise caution and conduct thorough research before making any investment decisions. As always, the information presented here is the writer’s opinion and should not be considered financial or investment advice.
In conclusion, the formation of StableCoinX and the treasury strategy implemented by Ethena Labs have set the stage for a potential rally in ENA’s price. With strong market demand and daily buying activities, ENA’s price surge beyond the $0.5 resistance level could signal further growth in the coming weeks. Stay tuned for more updates on this exciting development in the cryptocurrency market.