- The Ethena price correction develops into the bullish continuation pattern called flag, signaling a potential breakout in the near future.
- ENA TVL surged to 76.2% in the last three weeks to hit $9.2 billion, projecting an active accumulation behavior and a strengthening user base.
- On-chain data from Santiment highlights that crypto whales have bought up over 1 billion Ethena despite the recent price pullback
ENA, the cryptocurrency of the synthetic dollar protocol Ethena, shows a 3.7% drop during Tuesday’s U.S. market. The selling pressure aligns with the broader market pullback, signaling the continuation of the prevailing correction. While the bearish downturn may create distress for retail investors, the crypto whales significantly increased their position in anticipation of a continued recovery. The massive spike in Ethena’s total value locked (TVL) further reinforces the increased investor confidence in this asset despite market uncertainty. Will the coin price reclaim $0.7 again?
Crypto Whales Accumulate Over 1B ENA as Price Dips
Over the past week, the Ethena price has shown a brief correction from $0.7 to the current trading value of $0.575, accounting for an 18% loss. While the downswing followed a broader crypto market pullback as investors’ sentiment shifted to a post-rally pullback to recoup the exhausted bullish momentum.
The ENA price is currently holding above the 20-day EMA and 38.2% Fibonacci retracement level. Historically, a price pullback to these levels is considered a healthy correction for buyers to regain strength and drive price reversal.
In contrast to the price downtrend, the total volume locked (TVL) in Ethena has recorded a sudden increase from $5.48 billion to $9.66 billion, accounting for 76.2% growth. This surge indicates that users are increasingly locking capital into Ethena’s DeFi ecosystem, potentially attracted by stablecoin yields, staking incentives, or long-term trust in the protocol’s fundamentals.
Total Volume Locked | DeFiLlama
Amid a price correction, the rising TVL suggests increasing accumulation and a strengthening user base, which can set a bullish divergence.
Adding to the bullish note, the market analyst Ali Martinez recently highlighted that whales just bought up over 1 billion EMA in the last few days. His X (formerly known as Twitter) post also tried to create curiosity among traders about whale activity, as he quoted, “What do they know that we don’t?”
Whale Activity | Santiment
Historically, an accumulation trend from high-net-worth individuals has often coincided with major market bottoms and accelerated price rallies, signalling a higher potential for the current market rally to prolong.
Ethena Price Poised For Breakout From Flag Pattern
The four-hour chart analysis of ENA coin shows the recent price correction resonated within two parallel trendlines of a flag pattern. The chart setup is typically spotted within an established uptrend, as it provides the necessary buyers the necessary pause to recoup bullish momentum.
The recent golden crossover between the 50 and 200-day EMA slopes reinforces the bullish sentiment in the price for a continued recovery.
Currently trading at $0.5796, the Ethena price is just 10% away from challenging the pattern’s resistance trend line at $0.64. A potential breakout from this resistance will accelerate the bullish momentum and signal the continuation of the travel recovery.
The post-breakout rally could push the price to an initial target of $0.78, followed by an extended leap towards $1.
ENA/USDT -1d Chart
On the contrary, if the coin price faces overhead supply at the flag’s upper boundary at $0.62, the current correction could extend to the coming weeks before buyers could give a sustained breakout.
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