Ethena’s Ecosystem Growth Drives Rally, 65% Upside Projected

Ethena, known for its USDe stablecoin, has broken out of a rare bullish pattern on the one-day charts, signaling potential gains of over 65% from current levels. The cryptocurrency’s market cap recently surged past the $1 billion mark on October 14, bolstered by a 24.4% rally over the last week. Currently valued at $1.14 billion, Ethena’s market cap has climbed 200% from its September lows, with daily trading volumes exceeding $318 million.

Technical analysts are bullish on Ethena’s near-term prospects. Prominent trader CryptoBull_360 highlighted that ENA has broken out from an inverse head and shoulders pattern, a significant bullish reversal signal. The token also surpassed the upper boundary of a broadening wedge pattern, connecting key highs since April 10. According to the analyst, these developments point to a potential price target of $0.68, representing a 65% increase from its current price. However, continued gains are expected to correlate with positive momentum in Bitcoin.

Other analysts, including MisterSpread, have expressed similar optimism, forecasting a shorter-term target of $0.52, provided ENA maintains its support level at $0.42.

Ethena’s rally has coincided with a surge in futures market activity. CoinGlass reported that futures open interest reached $227 million, a significant increase from last week’s low of $137 million, reflecting growing interest in the token.

Notably, whales have been accumulating ENA, with large investors amassing over 2.25 million tokens, valued at approximately $932,500, in the past week. This influx of investment underscores confidence in the asset’s future performance.

A key catalyst behind Ethena’s rally is its proposed integration with Hyperliquid, a decentralized exchange for perpetual trading. The proposal, currently under review by Ethena’s Risk Committee, suggests incorporating Ethena’s liquidity and hedging systems into Hyperliquid’s on-chain ecosystem, reducing counterparty risk and enhancing transparency. Additionally, Ethena aims to launch its USDe stablecoin on Hyperliquid’s Layer 1 platform with the upcoming release of its EVM mainnet, further strengthening its DeFi integrations.

source