Ethena surges 27%, but here’s how ENA could push 38% higher
Key Takeaways
ENA pumped 27% following the Anchorage Ethena partnership and a bullish score by analysts. Will buybacks and company treasury drive it greater?
Ethena [ENA] rallied 27% in the course of the intra-day buying and selling session on the twenty fifth July as analysts turned bullish on its renewed development catalysts.
Specifically, the challenge may gain advantage from the stablecoin narrative and rising company treasury curiosity that may cut back VC provide overhang, noted Ryan Watkins, co-founder of Syncracy Capital.
“$ENA gives one of many solely pure-play exposures to stablecoins and tokenisation… Bonus is VC provide overhang now virtually neutralized.”
Can ENA add an additional 38% achieve?
Ethena is behind the favored USDe stablecoin that’s collateralized by crypto, and one other USDtb backed by short-term U.S treasury payments by way of BlackRock’s BUIDL.
Crypto influencer Ansem additionally echoed an analogous bullish outlook, citing the token’s breakout from its multi-month worth vary and aggressive buyback program.
Supply: ENA/USDT, TradingView
Per the each day chart, the breakout was defended at $0.45 as assist and triggering a 27% rally to $0.60. Assuming the analysts’ catalysts maintain, the subsequent upside goal can be $0.81, a 38% potential achieve if hit.
However Messari analyst Sam noted that the additional rally will solely be attainable if TradFi bids for the token.
As of press time, solely StablecoinX had proven curiosity in ENA as its company treasury. It stays to be seen whether or not others will comply with go well with.
The latest bullish drive was additionally induced by Anchorage Digital’s support for Ethena’s USDtb.
The workforce billed it because the ‘first GENIUS-compliant’ stablecoin, underscoring a vote of confidence within the challenge.
ENA’s valuation
In the meantime, the latest rally triggered sellers to lock in revenue. At press time, about 124 million ENA tokens had been despatched to exchanges to be offered, a transfer that would cap the rally or set off a cool-off.
Supply: Glassnode
On the identical time, the Community Worth to Transactions Ratio (NVT) confirmed that ENA was undervalued relative to cost, that means there was community utilization in comparison with the present worth.
The next NVT worth would counsel overvaluation, however that was but to be the case as of press time.
Supply: Glassnode
General, ENA’s breakout and underlying bullish catalysts like buybacks and treasury bids might gasoline the subsequent leg of the rally.
However broader market sentiment and demand from crypto treasuries may very well be essential for its anticipated uptrend.
