Ethena worth remained beneath stress this weekend after USDe, its stablecoin, briefly misplaced its peg, and its bullish liquidations jumped.
Abstract
- Ethena worth has remained beneath stress previously few days.
- The builders maintained that the USDe stablecoin was over-collateralized.
- Technical evaluation factors to extra draw back over time.
Ethena (ENA) token was buying and selling at $0.3670, up by 156% from its lowest stage on Friday. It stays about 60% of its highest level in September.
Whales have purchased the ENA dip
Ethena worth crashed by double digits on Friday, reaching its lowest stage on file in addition to crypto market plunge accelerated. It additionally suffered a $226 million liquidation occasion as exchanges shut down leveraged trades amid the intensifying sell-off.
Third-party information point out that whale traders have bought through the latest dip, suggesting they count on the ENA worth to rebound ultimately. In accordance with Nansen, whales now maintain 45.2 million tokens, up from the Friday low of 39.19 million tokens.
Extra information reveals that the highest 100 addresses boosted their holdings to 13.76 billion, up from this month’s low of 13.67 billion.
Whales possible purchased after the group printed stories displaying that the Ethena USDe stablecoin, which has over $12.5 billion in property, was adequately collateralized after dropping its peg.
In a notice, the builders mentioned that the proof of reserves, that are offered by third-party corporations like Chainlink, HT Digital, and HT Digital confirmed that it was overcollateralized by about $66 million.
In accordance with its transparency information, the USDe stablecoin is backed by property like Bitcoin, Ethereum, and liquid stablecoins. These property are held by corporations corresponding to Binance, Bybit, OKX, and Deribit.
Ethena has all the time been within the highlight, as some traders nonetheless recall Terra, which supplied a stablecoin with double-digit yields. It crashed in 2022, costing traders over $40 billion and damaging the popularity of different algorithmic stablecoins.
Ethena worth technical evaluation
The each day chart signifies that the ENA worth plummeted considerably final week. This crash occurred after the asset fashioned a double-top sample at $0.8538 and a neckline at $0.6060, its lowest stage since August. A double-top is among the most typical bearish patterns in technical evaluation.
The token has plunged beneath the 50-day and 200-day Exponential Transferring Averages. It additionally moved briefly beneath the year-to-date low of $0.2221.
Due to this fact, the almost certainly Ethena worth forecast is bearish, with the preliminary goal being at $0.2221. One other state of affairs is the place it varieties a dead-cat bounce, a short lived rebound that finally results in additional draw back.
