Ethena Price Surges 11%: Is More Growth Ahead for ENA?

The price of Ethena (ENA) has jumped by 11% as bullish trends gather strength, with indicators suggesting further growth may be possible. This recent increase follows a proposal to incorporate Ethereal, a decentralized exchange, into Ethena’s reserve management framework.

Key technical metrics indicate that ENA’s upward movement is becoming increasingly robust, yet it has not yet hit levels that generally signify overbought conditions. With buying pressure continuing to surpass selling, the trend indicates potential for additional gains.

Ethereal DEX Might Join Ethena Soon

Ethena (ENA) has experienced an 11% increase after a proposal for integrating Ethereal, a decentralized exchange (DEX), into the Ethena Network’s reserve management system, aiming to create an on-chain platform for spot and derivative trading that supports USDe, Ethena’s synthetic stablecoin.

The proposal, authored by user “Fells0x,” recommends allocating 15% of Ethereal’s prospective governance tokens to ENA holders. Ethereal intends to provide performance akin to centralized exchanges while ensuring self-custody, with features such as cross-margin and liquidity automation, and is projected to launch on testnet later this year.

Despite the recent surge in the past 24 hours, ENA’s RSI continues to suggest there’s room for further ascendancy.

Read more: What Is Ethena Protocol and its USDe Synthetic Dollar?

Currently, ENA’s 7-day RSI stands at 54.40, a significant increase from 26 just 20 days ago, indicating a solid upward momentum. The RSI (Relative Strength Index) is a widely used momentum indicator to determine if an asset is overbought or oversold. Values below 30 denote oversold conditions, while those above 70 indicate overbought territory.

Despite its recent surge, ENA’s RSI remains considerably below the overbought level, suggesting that the asset is not yet overextended. This implies that the recent 11% increase may only mark the beginning of a more significant upward trend, with further gains possible before ENA hits overbought conditions.

ENA Uptrend May Just Be Getting Started

ENA’s DMI indicates a robust trend, with the ADX at 42.0560, suggesting strong price momentum. The +DI at 31.0358 greatly exceeds the -DI at 13.1634, indicating that bullish sentiment is prevailing over bearish pressure.

This indicates that buying demand for ENA is currently robust and driving prices upward, making the continuation of the trend likely.

The Directional Movement Index (DMI) evaluates both the strength and direction of a trend. The ADX measures the overall trend strength, while the +DI and -DI lines reflect the magnitude of bullish and bearish movements, respectively. Here, the higher +DI indicates strong upward momentum, with bulls clearly in control.

With an ADX above 40, the trend is regarded as very strong. This suggests that ENA’s recent price increases are likely to continue. This combination of escalating bullish momentum and a robust ADX indicates that ENA could see further upward price movement in the near future.

ENA Price Prediction: Could There Be a 66% Increase?

ENA’s price is currently facing minor resistance between $0.41 and $0.46, indicating potential for further increases. Beyond this, another resistance zone appears between $0.46 and $0.65, suggesting that ENA could possibly soar by up to 66%. This supports the case for additional upward movement, given the present price dynamics.

The Global In/Out of the Money (GIOM) metric serves as a tool to assess the profitability of addresses holding an asset. It evaluates the average purchase price of tokens across various wallets to pinpoint support and resistance zones.

Read more: How To Use Ethena Finance To Stake USDe

When a significant number of holders are “in the money” (i.e., profitable), prices often face resistance as these holders may choose to sell. Conversely, areas with “out of the money” holders might act as support, as buyers are generally reluctant to sell at a loss.

On the downside, if the current trend turns, ENA has a weaker support zone located between $0.32 and $0.36. Should it fail to hold above $0.32, the price could decline further, possibly testing lows near $0.25. This illustrates that, while the upward potential is considerable, the inability to maintain support levels could expose ENA to notable downside risks.