What to know:
- Ethena partnered with FalconX for institutional stablecoin lending arrangements.
- ENA remains below its 20-day and 50-day EMAs, keeping short-term momentum under pressure.
- Open interest remains elevated near $210 million, while $0.0791 acts as key support.
Ethena price shows some potential for a breakout toward $0.087, considering its recent partnership with FalconX, marking a fresh institutional catalyst as the coin approaches a crucial resistance zone.
At press time, ENA is trading at $0.0853, down by 1.61% from its price 24 hours. The attention of market players is focused on the possibility of reclaiming the $0.0872 resistance level.
Also Read: ENA Price Prediction: Can Ethena Break $0.10 and Rally Toward $0.13?
FalconX Appointed by Ethena as Institutional Lending Partner
In its announcement on August 13, Ethena announced FalconX as an institutional lending partner. According to the agreement, Ethena will make stablecoin lending arrangements with FalconX, which are included in its institutional lending allocations.
Ethena said, “Ethena has partnered with FalconX, a leading digital asset prime broker, as an institutional lending partner.”
The deal helps to expand Ethena’s institutional lending activities as well as give it access to FalconX’s loan origination and secured lending expertise. Ethena also mentioned that this cooperation would help FalconX scale its balance sheet.
What matters for ENA? The key question is whether the increase in institutional activity can boost market sentiment. Price movement has not provided any definite bullish sign yet.
Also Read: Ethena Price Eyes Breakout to $0.3613 as Arthur Hayes Expands ENA Holdings
What Can Ethena Price Tell Us From the TradingView Chart?
The daily chart shows Ethena price below its 20-day and 50-day EMAs, which stand at $0.0872 and $0.0864 respectively. The 100-day and 200-day EMAs are far higher at $0.0928 and $0.1295 respectively.
The relative strength index (RSI) is at 47.89 compared to its average value of 54.35. This means the momentum is neutral or soft but not oversold. The buyers would need a stronger move to regain control.
Also Read: ENA Price Eyes $0.23 After 15% Rally Amid Ethena Ecosystem Growth
How Do Derivatives Impact ENA Price?
The ENA open interest, as reported by CoinGlass, is said to be around $210 million on August 13, whereas trading volume has been around $160 million. The liquidation data shows that longs and shorts have been liquidated, highlighting the volatility related to derivatives trading.
Elevated open interest may cause price movements to intensify in case ENA breaks out of its current trading range. Thus, a breakout should be supported by spot market demand rather than derivative positions.
Will Ethena Price Climb Above $0.0872?
The nearest resistance is at $0.0864 to $0.0872, which happens to be around where the 50-day and 20-day exponential moving averages lie. A breakthrough of $0.0872 could strengthen the recovery setup and put focus on $0.0928, which corresponds to the 100-day EMA.
On the other hand, the chart shows a support level of $0.0791. A breakdown of this level could mean that the recovery structure will fall apart.
Which Developments Should Traders Watch Going Forward?
The partnership with FalconX brings a new development for Ethena to watch out for; however, Ethena price needs technical confirmation.
The traders need to consider if the price reclaims the short-term exponential moving averages while the open interest remains high without causing any major volatility.
Currently, there is a mixed scenario; the fundamental backdrop has improved, but the momentum does not move into a bullish environment.
The cryptocurrency market remains volatile, and the traders need to look at the price movement, market sentiment, and coming catalysts before making investment decisions.
Also Read: Ethena Price Prediction: ENA Eyes $0.135 Rally After Base DeFi Growth
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Be the first to comment