ENA Surges 12% as Ethena Lab Accumulates: Is the $0.50 Mark Next?

Historically, purchases by the Ethena Labs team have resulted in price increases for ENA, suggesting a similar pattern could be repeating.
There is potential for an uptrend in ENA prices, but liquidity clusters may create obstacles.
Despite competition from other protocols, Ethena remains a strong player in the stablecoin market.
In the last 24 hours, the price of ENA increased by 12%, with trading volume rising to over five times the typical amount.
A technical breakout from a period of consolidation was triggered by the Ethena team's acquisition of ENA tokens.

Key Takeaways

Historically, purchases by the Ethena Labs team have resulted in price increases for ENA, suggesting a similar pattern could be repeating.
There is potential for an uptrend in ENA prices, but liquidity clusters may create obstacles.
Despite competition from other protocols, Ethena remains a strong player in the stablecoin market.
In the last 24 hours, the price of ENA increased by 12%, with trading volume rising to over five times the typical amount.
A technical breakout from a period of consolidation was triggered by the Ethena team's acquisition of ENA tokens.

ENA rallies 12% amid Ethena Lab's accumulation: Is $0.50 next?

Ethena Team's Accumulation is Growing

According to data from OnChain Lens, Ethena Labs has been actively buying and withdrawing ENA tokens from centralized exchanges (CEXs). They purchased 105.35 million ENA, valued at over $28 million, along with an additional 20 million ENA worth approximately $5.45 million from the Bybit exchange. These activities have followed a series of ongoing purchases from Bybit starting November 21st.

Currently, the Ethena team's total holdings amount to $88.67 million, demonstrating substantial accumulation. Historically, such acquisitions have been followed by significant price increases.

Ethena

Source: Onchain Lens

These transactions align with an increase in the USDe Reserve Fund and overall supply, alongside rising protocol fees. As of this report, the Reserve Fund sits at $62.45 million, while total fees have reached $600 million.

ENA

Source: Dune

The surge in stablecoin reserves suggests there is sufficient liquidity in the market. Additionally, the Ethena team's purchases have infused new capital into the cryptocurrency.

ENA Price Movement: What’s Next?

The price of Ethena has broken out from a consolidation phase lasting over a month and a half. ENA jumped from $0.2288 to approximately $0.30, with a majority of the price candles closing in the green on the 4-hour chart.

Indicators such as the Bull Bear Power (BBP) and the Relative Strength Index (RSI) point to bullish momentum. The BBP registered at 0.0396, while the RSI stood at 78, indicating that the market may be overbought, hinting at potential short-term selling.

Ethena ENA

Source: TradingView

Notably, the ENA price is above $0.28—a price range that has seen three equal highs. Sustained bullish momentum could propel the price towards $0.50, which aligns with the peak of the falling wedge pattern. However, sellers have begun to accumulate around the $0.3534 mark, which has historically been a critical point—previously triggering declines to $0.2280 before the recent reversal.

Market Dynamics: Liquidity Heatmap Analysis

The liquidity heatmap reveals a significant amount of capital positioned below the current price level. There is scant liquidity above $0.30 compared to the larger concentration below $0.29. The area between $0.26 and $0.28 displays the most extensive liquidation pressure for the day, suggesting that ENA may drop to capture this liquidity.

This order concentration, represented in the CoinGlass data chart, presents a contrasting scenario to the idea of ENA rising above $0.50. If the price movement mirrors the highest liquidity clusters, a downturn for ENA seems more likely.

ENA

Source: CoinGlass