Spark integrates Ethena USDe as ENA forms a risky pattern

The Ethena token has stabilized after falling sharply in recent days after Spark announced its stablecoin integration.

Ethena (ENA) rose to $0.83 on January 14, recovering from this week’s low of $0.7255. Despite the recovery, the token remains 35% below this year’s high and has formed a risky chart pattern that indicates the potential for further pullbacks.

Spark, the 13th largest player in the decentralized finance industry by assets, announced that it will integrate Ethena’s USDe (USDE) and sUSDe stablecoins into the Spark Liquidity Layer. As part of the integration, Spark Liquidity Layer will allocate stablecoins to Ethena and plans to increase the allocation to $1.1 billion.

“We see USDe as an incredibly powerful primitive for today’s top DeFi applications and developers. “Ethena’s integration with the Spark Liquidity Layer represents a major step towards increasing the accessibility of USDe and sUSDe, allowing more users to benefit from crypto-native assets.”

Ethena has emerged as one of the biggest players in the crypto industry. The USDe stablecoin currently has a market cap of over $5.79 billion, making it the fourth largest in the space. Unlike Tether and USDC, USDe offers its holders a monthly return that currently stands at 11%. sUSDe, the staked version of Ethena, has over $4.1 billion in assets.

Spark is also a prominent player in the industry and allows users to accumulate and borrow stablecoins. The USDS stablecoin has a market cap of $6.13 billion, making it the third largest in the industry.

Ethena price technical analysis ENA price chart | Source: crypto.news

The daily chart shows that ENA has been in a strong downtrend for the last few weeks, falling from a high of $1.3085 at the beginning of this year to its current low of $0.8345.

The token fell below the 50-day and 25-day exponential moving averages, signaling that the bears are in control.

Most importantly, Ethena formed a double-top chart pattern with a neckline at $1.3085 and a neckline at $0.8455. A double top is a widely recognized bearish indicator.

Given this pattern, ENA is likely to continue falling as sellers target the next psychological level of $0.50 (about 40% below the current price). However, a move above the key resistance level of $1 will invalidate the bearish view.