Ethena has emerged from a unique bullish pattern on the one-day charts, potentially leading to gains exceeding 65% from its current price.
In the past week, Ethena (ENA), recognized for the USDe stablecoin, experienced a 24.4% increase. As of October 14, its market capitalization crossed the $1 billion threshold, marking a 200% rise from its September low and reaching $1.14 billion. The daily trading volume remains above $318 million.
Analysts indicate that Ethena’s breakout from various patterns on the 1-day chart suggests further upward movement.
A nameless trader, CryptoBull_360 pointed out that ENA has emerged from an inverse head and shoulders formation, a rare setup that indicates a significant bullish reversal, potentially driving the ENA rally further. Additionally, it has surpassed the upper boundary of a broadening wedge pattern that has connected the highest peaks since April 10.
The analyst has set a target price of $0.68 for ENA, which represents a 65% increase from current levels, contingent on Bitcoin’s (BTC) continued positive momentum.
Other analysts shared similar optimistic forecasts, with MisterSpread predicting that ENA could reach $0.52 in the near term, provided it maintains support above $0.42.
ENA’s price increase also coincided with a rise in futures open interest. According to CoinGlass, futures market open interest peaked at $227 million, rising from last week’s low of $137 million.
Moreover, whales have recently focused on the token, with reports highlighting their accumulation of ENA throughout the past week, as noted by crypto.news.
Smart DEX traders, known for their successful trades on decentralized exchanges, acquired over 2.25 million ENA tokens over the last week, worth $932.5K, showcasing their confidence in the token’s potential growth.
Among other driving factors is Ethena’s recent proposal to integrate its liquidity and hedging system within Hyperliquid, a decentralized platform for perpetual trading.
This proposal, currently being evaluated by the Ethena Risk Committee, suggests transitioning part of Ethena’s hedging activities on-chain to Hyperliquid, aiming to increase transparency and mitigate counterparty risks.
Additionally, the proposal includes introducing the USDe stablecoin to Hyperliquid’s Layer 1 platform once the EVM mainnet is launched, broadening its DeFi integrations.
As of press time, ENA was trading at $0.403 per data from crypto.news.
