- Ethena’s ENA targets $0.78 amid surging USDe adoption and strong buybacks.
- ENA holds key Fibonacci and VWAP levels, which suggests a possible bullish breakout.
- Futures trading volume rose by 41.84%, boosting confidence in continued price gains.
Ethena (ENA) price has continued to rise. Right now, it is trading around $0.74, and the technicals indicate that there is a probability of it reaching $0.78. The token has been surging since a large-scale buyback program. Also, there’s now an all-time high in the use of its USDe stablecoin among cross-chains.
Ethena Foundation Purchases Back ENA as USDe Grows
Between July 22 and July 25, the Ethena Foundation bought back 83 million ENA via a buyback program. This was carried out by third-party market makers. The purchase is equivalent to 1.3% of the circulating supply.
The move comes as the USDe soared to become the third-biggest synthetic dollar by market cap. USDe is currently supported on 23 chains through LayerZero. It has reached as far as $5.7 billion in cross-chain volume with over $743 million transferred within the last week. This represents a new all-time high.
The two trends of increased USDe adoption and massive ENA buyback have boosted investors’ interest. Both factors have jointly ensured healthy market conditions to keep the token’s price on a continued rise.
ENA Tests Important Fibonacci and VWAP Levels
ENA is currently trading above the 1.618 Fibonacci extension at $0.6958 on the 4-hour chart. This has been a breakout point in the earlier part of the month, but it is currently a support.
Price is trading approximately at $0.74, slightly below a set of VWAP resistance levels comprising $0.7479 to $0.7522. If it remains above these VWAP levels, it would lead to the next target at $0.7840.
The 2.618 Fibonacci extension level is $0.7840 and the key resistance to further upside. Profit has been taken by sellers in the past just above this level, leading to short-term pullbacks.
Source: TradingView
The closest major support area is the next Fibonacci extension zone at around the $0.6958 level below the current market price. This level has been maintained through several retests, indicating good buyer interest. There is also more support around $0.63, where the price consolidated before its last bull run.
The Fibonacci extensions and VWAP levels alignment in layers form an evident short-term trading structure. A breakout past VWAP resistance would be favorable conditions for the bullish trend. It could enable it to head towards $0.7840, whereas a decline below 0.6958 may lead to further retreat.
Also Read | Ethena (ENA) Eyes $1.50 Target After Bullish Flag Breakout
Bullish Momentum Nears Key Resistance Zone
The 4-hour chart reveals the growing upward trend, which is confirmed by the trading volume of 1.14 million. Relative Strength Index (RSI) indicates that the asset is in an overbought range with a figure of 70.35. This means that there is intense buying pressure.
Bullish momentum is also confirmed with MACD readings. The 0.0395 MACD line is above the signal line, which is 0.0322. Such a bullish divergence is indicative of further gains.
The recent price movement is the continuation of a robust rally that started at the beginning of August. It brings ENA close to the vital resistance at $0.78. However, RSI levels are in overbought territory. Therefore, traders should be on the lookout for profit-taking in the short term. The larger trend is still bullish with ENA remaining above the current support areas.
MACD and RSI. Source: TradingView
ENA Futures Point to a Strong Bullish Outcome
According to Coinglass data, ENA has also experienced increased derivatives market activity. The volume of futures trading has increased by 41.84% in the last 24 hours to reach $4.35 billion.
The open interest is up by 3.34% to $1.36 billion, an indicator of heightened speculative stance among traders. Large readings of the two metrics indicate increasing confidence in the current market direction, which further supports the bull outlook.
This ecosystem growth, along with on-chain liquidity and token buyback efforts, creates a solid underlying basis for a stronger momentum. If there is a pause or drop in momentum, the next key support levels will be around $0.73 and even at $0.70.
Source: Coinglass
Also Read | Pendle Surges After Ethena (USDe) Partnership as New All-Time High Looms
