Ethena Token Faces Pressure Amid USDe Peg Loss
ethena (ENA) token has been under pressure recently. The trouble started when its stablecoin, USDe, briefly lost its peg. This event led to a surge in bullish liquidations. Despite this, the ENA price is now at $0.3670, marking a 156% increase from its Friday low.
However, it’s still 60% below its September peak. The developers claim USDe is over-collateralized. They provided proof of reserves to reassure users. This move aimed to restore confidence in the project.
Whales, or large investors, saw the dip as a buying opportunity. They increased their holdings, suggesting they believe in a future rebound. according to Nansen, whale investors now hold 45.2 million tokens, up from 39.19 million on Friday. This buying spree indicates optimism about ENA’s potential recovery.
USDe’s peg loss raised concerns.To address this, Ethena Labs shared a proof of reserves.The report showed the stablecoin has over $12.5 billion in assets. Autonomous firms like Chainlink and Harris & Trotter verified the collateral. The top 100 addresses now hold 13.76 billion tokens, up from 13.67 billion. this action shows faith in the project. The stablecoin’s reserves include Bitcoin, Ethereum, and other liquid stablecoins. These assets are stored with major exchanges like Binance and OKX. The team’s transparency efforts seem to be working. Whales’ interest is a positive sign. It suggests they see value in ENA despite the recent downturn. the team also publishes weekly reserve proofs. This transparency aims to build trust. It shows the stablecoin is backed by solid assets.
Technical analysis paints a bearish picture. The ENA price chart shows a double-top pattern. This pattern often signals a price drop. the token fell below key moving averages. It even dipped below its year-to-date low of $0.2221. The price could fall further, with $0.2221 as the next key support level. A dead-cat bounce, a temporary price rise, might occur. But the long-term trend looks bearish. The token’s price could test the $0.2221 level. A dead-cat bounce could happen, but the overall trend is downward. The token’s price action formed a double-top pattern. This pattern usually predicts a price drop.the token is below its 50-day and 200-day averages.The price might test the $0.2221 mark. The token’s price could fall more before stabilizing.
Some compare Ethena to Terra, which collapsed in 2022. Terra’s crash hurt algorithmic stablecoins’ reputation. Ethena’s developers are working to avoid a similar fate.They wont to prevent a repeat of Terra’s disaster.
Whales’ interest is a bullish signal. Yet, the daily chart shows a bearish outlook. The token’s price is below crucial levels. The ENA price might drop more before recovering.
USDe’s reserves are checked by firms like Chaos Labs and Llama Risk. These checks ensure the stablecoin’s stability. The team’s quick response shows they’re serious about maintaining stability. The
