ENA rallies 12% amid Ethena Lab’s accumulation: Is $0.50 next?
Journalist
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Key Takeaways
Is Ethena Labs’ historical past of shopping for ENA repeating?
Purchases by the Ethena Labs staff have traditionally led to cost surges in ENA, and this may very well be one other unfolding repetition.
Will ENA hit $0.50 as the following goal?
The value motion was in assist of an extra uptrend, however liquidity clusters may current some problem.
Ethena has maintained its aptitude within the stablecoin market though there was competitors from different protocols.
The value motion of ENA rose by 12% up to now 24 hours, whereas quantity spiked by greater than 5 instances the worth change.
A technical breakout from the consolidation drove the rally instantly after the Ethena staff started shopping for ENA tokens.
Ethena staff buys as its reserves develop
As per information from OnChain Lens, Ethena Labs was shopping for and withdrawing ENA from centralized exchanges (CEXs). First, they purchased greater than $28 million value of 105.35 million ENA.
Additionally, one other 20 million ENA valued at $5.45 million was acquired from Bybit. This adopted a string of further purchases from the Bybit change because the twenty first of November.
The Ethena staff’s holdings had been at $88.67 million, representing huge accumulation. Worth surges have traditionally adopted such purchases.
Supply: Onchain Lens
These purchases coincided with progress within the USDe Reserve Fund and provide, in addition to the protocol’s charges. On the time of writing, the Reserve Fund was at $62.45 million, whereas cumulative charges had been at $600 million.
Supply: Dune
The growing stablecoin reserves meant that there was sufficient liquidity. Moreover, the purchases from the staff injected capital into the cryptocurrency.
ENA value breaks out: What now?
Ethena value broke out of the month-and-a-half consolidation. ENA surged from $0.2288 to round $0.30, with many of the candles closing inexperienced within the 4-hour chart.
The Bull Bear Energy (BBP) and RSI highlighted the power of bulls. The BBP studying was at 0.0396, whereas the RSI was at 78. The RSI was within the oversold zone, hinting at potential short-term retaliation by the sellers.
Supply: TradingView
Apparently, ENA value was above $0.28, a zone that had three equal highs. Sustained momentum may push the worth towards $0.50, which rhymed with the highest of the falling wedge sample.
Nevertheless, the $0.3534 was challenged on account of vendor accumulation round this zone. Earlier, this zone initiated the transfer to lows at $0.2280, the place the reversal began following value contraction.
The liquidity heatmap introduced a unique image.
Liquidation heatmap hints at a possible drop
The liquidity heatmap confirmed extra capital was situated to the draw back. The liquidity above $0.30 was very minimal in comparison with the one under $0.29.
The excessive liquidation leverage between $0.26 and $0.28 was the very best for the day. Thus, the worth of ENA may decline to choose up this liquidity.
This focus of orders was inside a value vary, as seen within the CoinGlass information chart.
Supply: CoinGlass
This contradicts the potential of ENA value rising previous $0.50. If value adopted the very best liquidity clusters, then it was extra probably for ENA to say no.
