Ethena token stabilized after falling sharply in current days following Spark’s announcement of stablecoin integration.
Ethena (ENA) rose to $0.83 on Jan. 14, recovering from this week’s low of $0.7255. Regardless of the rebound, the token stays 35% under its highest stage this yr and has fashioned a dangerous chart sample that implies a possible additional retreat.
Spark, the Thirteenth-largest participant within the decentralized finance, business by belongings, introduced it could combine Ethena’s USDe (USDE) and sUSDe stablecoins into the Spark Liquidity Layer. As a part of the combination, Spark Liquidity Layer will allocate stablecoins to Ethena, with plans to extend the allocation to $1.1 billion.
“We see USDe as an extremely highly effective primitive for the most effective DeFi functions and builders at present. Ethena’s integration with Spark Liquidity Layer represents a serious transfer in the direction of enhancing the accessibility of USDe and sUSDe, permitting extra customers to learn from crypto-native belongings.”
Ethena has emerged as one of many greatest gamers within the crypto sector. Its USDe stablecoin at the moment has a market cap of over $5.79 billion, making it the fourth-largest within the area. In contrast to Tether and USDC, USDe gives holders a month-to-month yield, which is at the moment at 11%. Ethena’s staked model, sUSDe, has over $4.1 billion in belongings.
Spark can also be a distinguished participant within the business, permitting customers to avoid wasting and borrow stablecoins. Its USDS stablecoin has a market cap of $6.13 billion, making it the third-largest within the sector.
Ethena worth technical evaluation
The day by day chart exhibits that ENA has been in a powerful downward development over the previous few weeks, dropping from a excessive of $1.3085 earlier this yr to the present $0.8345.
The token has fallen under the 50-day and 25-day exponential shifting averages, signaling that bears stay in management.
Most notably, Ethena has fashioned a double-top chart sample at $1.3085, with the neckline at $0.8455. A double-top is a well known bearish indicator.
Given this sample, ENA is more likely to proceed declining as sellers goal the following psychological stage at $0.50 — about 40% under the present worth. Nonetheless, a transfer above the important thing resistance stage at $1 would invalidate the bearish outlook.
