The recent 16% rise of Ethena (ENA) is a consequence of the golden cross formation on the chart, traditionally signaling the start of a strong uptrend.
ENA Price Surge and Its Causes
Ethena (ENA) rose 16% to $0.85 on August 11, extending its 30-day profit nearly to 150%. The market cap of ENA reached $5.4 billion. The price increase is linked to improved investor sentiment, as the synthetic stablecoin USDe surpassed $10 billion in circulating supply, marking a significant milestone for the project.
Price Analysis and Technical Indicators of ENA
ENA broke out of a descending parallel channel in early July coinciding with increased investor demand. On August 11, the 50-day simple moving average crossed above the 200-day, forming a golden cross. This indicates the potential start of a strong uptrend. ENA exhibited similar price movements in late November, leading to gains over 87%.
Market Influence and ENA Prospects
Strong Ethereum rallies often positively impact Ethereum-based projects. Increasing interest from Korean investors also supports demand for Ethena. Given the current trend and technical indicators, further price growth for ENA seems possible, though minor corrections may occur before the next upward cycle begins.
The rise in Ethena's price, synchronized with positive trends in the Ethereum market, along with the strengthening of USDe's position, provides a solid foundation for ENA's future growth.
