Ecosystem growth fuels Ethena rally, analysts eye 65% upside

Ethena broke out of a rare bullish pattern on one-day charts and could see gains of over 65% from current price.

Over the past seven days, Ethena (ENA), known for its USDe stablecoin, is up 24.4%. The market value of the crypto asset exceeded $1 billion on October 14. It’s now up 200% from its lowest point in September to $1.14 billion. Daily transaction volume is above 318 million dollars.

According to analysts, Ethena broke multiple formations on the 1-day chart, indicating further upside.

Anonymous trader CryptoBull_360 noted that ENA broke out of the inverse head and shoulders formation; This is a rare pattern that signals a major uptrend that could further fuel the ENA rally. Moreover, it has broken above the upper part of the widening wedge formation that has consolidated the highest volatility since April 10.

The analyst set the bullish target for ENA at $0.68. This represents a 65% increase from current levels, provided Bitcoin (BTC) continues to see positive momentum.

Other commentators have echoed similar bullish sentiments that MisterSpread ENA will reach $0.52 in the short term as long as it remains above the $0.42 support level.

ENA’s price increase also coincided with an increase in open interest in futures. According to CoinGlass, open interest in the futures market increased from last week’s low of $137 million to $227 million.

As reported by Crypto.news, whales have also previously turned their attention to the token and were seen accumulating crypto over the past week.

Known for consistently executing profitable swaps on decentralized exchanges, smart DEX traders captured more than 2.25 million ENA tokens worth $932.5 thousand last week, showing their confidence in the token’s potential growth.

Among other catalysts is Ethena’s proposal to integrate its liquidity and hedging system into Hyperliquid, a decentralized exchange for perpetual trading.

The proposal, currently under review by the Ethena Risk Committee, proposes moving some of Ethena’s on-chain hedging flow to Hyperliquid, increasing transparency and reducing counterparty risks.

Additionally, the offering includes the addition of USDe stablecoin to Hyperliquid’s Layer 1 platform with the launch of the EVM mainnet and further expansion of DeFi integrations.

At the time of writing, ENA was changing hands at $0.403 per data from crypto.news.