ENA's Value Skyrockets by 17% in a Week, Charting Course Towards the Dollar Mark!
In the world of cryptocurrency, Ethena (ENA) has been making waves recently, with a 17.6% increase over the past seven days. However, a 10.45% retracement in the past 24 hours at press time suggests a possible short-term correction.
The new Ethena treasury vehicle, StablecoinX, announced plans to pursue a "multi-year treasury strategy to build a reserve of ENA". This move is considered extremely bullish for ENA in the long term, with a $1 price target not being just hype.
Yet, the Moving Force Index (MFI) has shown a bearish divergence in recent days, which might explain the price retracement. Nevertheless, the supply distribution did not show sustained selling pressure from holders, which was an encouraging factor.
ENA reached the $0.67 resistance level, a price it had previously traded at in early February. After spending months below the $0.485 resistance level, ENA's strong performance over the past week followed the key support/resistance flip. Support zones identified via on-chain cost basis distribution (CBD) are around $0.44, $0.47, and a stronger support near $0.35, which could serve as price floors if selling intensifies.
Trading volume surged 34% to $1.16 billion, and the volume-to-market-cap ratio is around 30%, implying active trader participation. The On Balance Volume (OBV) for ENA has been steadily rising in July, indicating strong buying pressure. Despite some short-term bearish signs, there is ongoing strong buying pressure reflected by these indicators, suggesting continued engagement and accumulation by holders, including institutional interest.
Crypto analyst Ali Martinez noted that whales continued to accumulate ENA tokens, with the number of addresses with 100K-1M ENA balance growing from 514 to 574. Arthur Hayes, co-founder of BitMEX, bought 2.16 million ENA worth $1.03 million at the time and holds 7.76 million ENA worth $4.59 million.
The announcement of the first stablecoin-focused Ethena treasury company bolstered bullish conviction. However, the recent price drop in Bitcoin [BTC] has raised concerns about a possible deeper dip across the crypto market. Yet, the on-chain metrics and technical indicators for ENA do not clearly indicate a confirmed local top for ENA. Instead, the data suggests mixed signals with some caution warranted.
A major test for ENA comes on August 5, 2025, with a $100 million token unlock event. With a significant amount of supply already on exchanges, this event could increase selling pressure. Technical indicators are also mixed: the MACD histogram is turning slightly negative, and the RSI is close to the overbought zone, indicating possible near-term cooling.
In summary, although some on-chain indicators suggest weakening momentum and potential cooling off, there is no definitive on-chain confirmation of a local top for ENA at this time. The significant token unlock and mixed technical signals mean the price could still fluctuate considerably, especially coupled with Bitcoin's broader market correction. Traders and investors should beware of a short-term pullback and price volatility, but the long-term outlook for ENA remains bullish.
- Despite a recent 10.45% price retracement in Ethena (ENA), its new treasury vehicle, StablecoinX, is pursuing a long-term strategy to build a reserve of ENA, which is considered extremely bullish for ENA.
- ENA's strong performance over the past week followed a key support/resistance flip, with the price reaching the $0.67 resistance level, a price it had previously traded at in early February.
- Trading volume surged for ENA, with the volume-to-market-cap ratio being around 30%, implying active trader participation, and the On Balance Volume (OBV) for ENA has been steadily rising in July, indicating strong buying pressure.
- Whales continue to accumulate ENA tokens, and even notable figures like Arthur Hayes, co-founder of BitMEX, have purchased large amounts of ENA, holding a significant portion in his portfolio.
- A major test for ENA comes on August 5, 2025, with a $100 million token unlock event, which could increase selling pressure and cause considerable price volatility, particularly when coupled with any Bitcoin [BTC] market correction. Despite some on-chain indicators suggesting weakening momentum and potential cooling off, the long-term outlook for ENA remains bullish.
