The cryptocurrency market is off to a promising start this week amid the 'Uptober' rally. Ethena (ENA) has drawn special attention by increasing 18%.

What’s Driving ENA’s Bullish Momentum?

ENA's rally follows a proposal from the Ethena community to include Solana's SOL token as a backing asset for USDe, Ethena’s stablecoin. The proposal outlines a hedging strategy similar to those used with Bitcoin and Ethereum perpetual futures. Due to Solana's shorter trading history and lower liquidity, the allocation will be introduced in phases, ensuring market stability. The news has injected bullish sentiment among investors.

Can ENA Break Out and Gain 100%?

Crypto analyst @ZaykChart shared his outlook on Ethena (ENA), noting a Descending Broadening Wedge pattern on the 1D timeframe, often associated with bullish breakouts. ENA is currently trading at $0.40, just under a key resistance trendline. Zayk's target of $0.80 suggests a potential 119% rise.

What’s Next for ENA?

With momentum building, all eyes are on ENA's next move. A confirmed breakout could push the token into uncharted territory, offering substantial returns for bullish traders. However, volatility remains a concern.

ENA's surge underscores the potential for significant growth in the crypto market, but investors should be mindful of the risks associated with volatility.