Ethena (ENA) price is up 11% as bullish momentum continues to strengthen, with signs indicating there is still room for growth. The recent surge comes after a proposed integration of Ethereal, a decentralized exchange, into Ethena’s reserve management system.
Technical indicators show that ENA’s uptrend is gaining momentum but has not yet reached levels that typically signal overbought conditions. With buying pressure continuing to outweigh selling, the trend suggests further upside potential.
Ethereal DEX May Appear on Ethena Soon
Ethena (ENA) surged 11% after Ethereal, a decentralized exchange (DEX), proposed integrating into the Ethena network’s reserve management system, becoming an on-chain venue for spot and derivatives trading that supports USDe, Ethena’s synthetic stablecoin.
The proposal, written by user “Fells0x,” suggests distributing 15% of Ethereal’s potential governance tokens to Ethena (ENA) holders. Ethereal aims to offer centralized exchange-level performance while maintaining self-custody, with features like cross-margining and liquidity automation, and is expected to launch on testnet later this year.
Read more: What is the Ethena Protocol and its Synthetic Dollar USDe?
Even with the recent surge over the past 24 hours, ENA’s RSI still appears to show more room for growth.
ENA’s 7-day RSI currently stands at 54.40, up significantly from 26 just 20 days ago, signaling strong upward momentum. The RSI (Relative Strength Index) is a popular momentum indicator used to assess whether an asset is overbought or oversold. Values below 30 indicate oversold conditions, and above 70 suggest overbought territory.
ENA 7D RSI. Font: Sanitary
Despite its strong rally, ENA’s RSI is still well below the overbought threshold, implying that the asset is not yet in an overheated state. This suggests that the recent 11% surge could be just the beginning of a larger upward move, as there is still room for more gains before ENA reaches overbought levels.
ENA’s uptrend may just be beginning
ENA’s DMI shows a strong trend, with the ADX at 42.0560, signaling strong price momentum. The +DI at 31.0358 is significantly higher than the -DI at 13.1634. This indicates that bullish sentiment is overpowering bearish pressure.
Thus, this suggests that buying demand for ENA is currently strong and driving the price higher, making the trend likely to continue.
ENA Directional Movement Index. Fonte: TradingView
The Directional Movement Index (DMI) measures both the strength and direction of a trend. The ADX assesses the overall strength of the trend, while the +DI and -DI lines represent the magnitude of bullish and bearish movements, respectively. In this case, the higher +DI reflects strong upward momentum, with the bulls firmly in control.
Therefore, given the ADX value above 40, the trend is considered very strong. This means that ENA’s recent gains are likely to persist. This combination of increasing bullish momentum and a strong ADX suggests that ENA could experience continued upward price movement in the near term.
Price forecast
The current ENA price faces relatively weak resistance between $0.41 and $0.46. Hence, this suggests that there is room for further upward movement. Furthermore, there is another resistance zone between $0.46 and $0.65, which implies that ENA could potentially surge by as much as 66%. This makes a strong case for further upward movement given the current price action.
The Global In/Out of the Money (GIOM) metric is a tool used to determine the profitability of addresses holding an asset. It analyzes the average purchase price of tokens across multiple wallets to identify areas of support and resistance.
Read more: What is a stablecoin? A beginner’s guide
When a large number of holders are “in profit” (i.e. profitable), the price tends to face resistance as these holders can sell. Conversely, areas with holders “in loss” can act as support as buyers are less likely to sell at a loss.
On the downside, if the current trend reverses, ENA has a weaker support zone between $0.32 and $0.36. If it fails to hold above $0.32, the price could decline further and potentially test as low as $0.25. This indicates that while the upside potential is substantial, failure to hold support levels could result in significant downside risk.
ENA Global In/Out of the Money. Fonte: IntoTheBlock
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