ENA technical signals suggest prices could rise
Nairobi (CoinChapter.com)
Ethena (ENA)
A falling wedge pattern is showing on the 1-day price chart, indicating a possible bullish momentum. Notably, this pattern has hinted that ENA may be preparing for a breakout when observed over the past few weeks. On May 21, 2024, ENA was trading at $0.726192 with a market cap of $1.1 billion and a 24-hour trading volume of $169.93 million. This technical analysis explores the current situation and future price action.
Technical analysis: Bullish momentum gradually builds
The falling wedge breakout on the Ethena price chart is a key technical event. Historically, this bullish pattern occurs when the price consolidates between two descending trendlines. On May 20, 2024, Ethena broke out of the upper trendline of the wedge chart at a price of $0.74. This breakout led to a massive price increase, with ENA reaching $0.816. This breakout signifies the end of the downtrend and the beginning of a new upward trajectory.


ENA/USD 1-day price chart. Source:
TradingView
Furthermore, the relative strength index (RSI) is currently at 67, indicating strong buying pressure but not overbought. The moving average convergence divergence (MACD) indicator showed a bullish crossover, with the MACD line crossing above the signal line, further strengthening Ethena’s bullish outlook.
The next resistance is at $1.213. A breakout of this barrier could result in solid gains for Ethena. The breakout coupled with favorable technical indicators support the bullish bias, suggesting that Ethena is expected to continue its upward movement.
ENA’s on-chain metrics highlight strong growth and liquidity
Interestingly, Ethena’s on-chain data reveals key market dynamics and investor behavior. The total value locked (TVL) is $24.79 billion, showing strong user engagement. In addition, Ethena generates $105.23 million in fees per year, showing huge revenue potential.


ENA price and volume chart. Source:
Terminal.ai
In addition, the platform's annualized revenue is $8.69 million, reflecting its revenue generation capabilities. With a 24-hour trading volume of $140.64 million, Ethena demonstrates high liquidity and active trading interest. Its fully diluted valuation (FDV) is $11.145 billion, highlighting future growth potential.
Recent data shows that decentralized exchange (DEX) volume increased by 35.5%, with $7.35 million traded in the past 24 hours. Notably, the price of Ethena increased by 12.9% to $0.7963, driven by higher trading volume and positive sentiment. Overall, this strong on-chain activity highlights Ethena's strong position in the market and diversified investor participation.