Ethena (ENA) is making notable waves in Q3, supported by whale accumulation and increasing demand for USDe.
ENA's Strength Amid Token Unlocks
As evident on the daily chart, July was outstanding for Ethena's price, which surged from $0.23 to $0.70. This growth solidified its status as one of the most bullish altcoins in the market.
Despite this rally, any retracement remained limited, showcasing its underlying strength. In early August, ENA further confirmed its resilience by bouncing off the $0.52 support zone after a significant token unlock event.
Investors showed little concern over the unlock, reflecting strong confidence in the project's fundamentals. Moreover, whale investors increased their stakes, as verified by an analyst revealing that wallet addresses holding between 10 million and 1 billion ENA accumulated over 1 billion tokens.
Rising Demand for USDe
Demand for USDe continues to grow, with the total supply reaching $9.612 billion, nearing the $10 billion mark. This increase underscores investor confidence in Ethena's ecosystem.
In support of this trend, Ethena Labs announced that AAVE increased caps for sUSDe and USDe to $350 million and $300 million, respectively. This decision helped boost Ethena's price by over 5% in intraday trading to $0.63.
Technical Indicators for ENA/USD Indicate Imminent Breakout
The ENA/USD chart on Binance reflects positive momentum as the price climbs toward July highs. Technical indicators are signaling a bullish trend across the board.
The CMF has turned positive today at 0.01, indicating rising money inflows and positive sentiment among investors. Similarly, both the AO and MACD show increasing momentum.
The RSI is currently at 63.95, indicating strength with potential for further upside. Additionally, the chart formed a golden cross between the 50-day and 200-day EMAs, a classic signal of long-term bullish momentum. Furthermore, the price action broke out of a falling wedge pattern this week, which historically precedes bullish moves.
Currently, ENA's price exhibits strong signs of growth, backed by both technical indicators and fundamental factors such as whale interest and rising demand for USDe.
