Ethena continues to move in the right direction in terms of improving trust and institutional credibility for its synthetic dollar, USDe, given its recent addition of another custodian for the backing assets in the form of Anchorage Digital. This is a major step forward for Ethena in terms of developing infrastructure related to security.
What distinguishes Anchorage Digital Bank is that it is America’s first-ever federally chartered and crypto-native bank that operates with extensive US regulatory supervision. Now with Anchorage on its custodian list, Ethena further secures its overall compliance structure relating to USDe’s backing assets.
Also Read: Ethena’s DeFi Dominance Erodes as $8.3 Billion USDe Redeemed
ENA Approaches Key Falling Wedge Breakout
However, the crypto analyst, Captain Faibik, revealed that ENA continues to receive significant market interest; its price continues to tighten inside a falling wedge pattern. A falling wedge pattern is usually associated with bullish trend reversals. The market is observing increasing balance, as indicated by the continuously shrinking range. Market players are waiting for a breakout on the upper trend line.
Source: Captain Faibik
The $0.38 level remains an important resistance area for ENA and one that traders and investors should keep their attention focused on. Breaking past an important resistance level, particularly accompanied by an appreciable rise in trading activity, may help solidify that a change in momentum is underway. This in turn may help encourage additional buying activity.
ENA Eyes Short-Term Recovery Momentum
From the technical perspective, the current price is at $0.212, firmly above the $0.20-$0.205 support level, which has been a strong demand zone. Price is back above the 20 SMA, indicating a possible change in momentum to the bullish side. The resistance levels are at $0.222-$0.225, and a breakout could move the price towards $0.24-$0.26.
Source: TradingView
It can be observed that the RSI close to 59 indicates substantial buying power with room to move further upwards. The positive buy signal sustains the ongoing reversal in prices, provided that the price sticks above the major support level. It can thus be concluded that ENA continues to have an outlook that is positive in the short term, although a breach above the major resistance is essential to justify the ongoing trend, or else temporary consolidation might happen.
Also Read: Ethena (ENA) Price Targets $0.80 as Arthur Hayes Buys 1.22 Million Tokens
