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Will the price of Ethena ($ENA) reach $0.50 as the recovery rally gains momentum with the proposal to add Solana as a backing asset for $USDe?
With the market cap crossing the $1 billion mark, Ethena ($ENA) has increased by 15.32% in the past 24 hours. Currently, the altcoin is trading at $0.3887, with a 33.65% rise in the last seven days.
As the bullish trend in Ethena’s $ENA token is scaling to new heights with the newfound momentum, will the breakout run reach $0.50?
Ethena’s Inverted Head and Shoulder Breakout Rally
As the bullish recovery in the $ENA price trend gains momentum, the 8-hour price chart reveals an inverted head-and-shoulder pattern breakout. The breakout rally peaks at $0.41 before taking a minor pullback.
Based on the Fibonacci levels, the $ENA token struggles to sustain dominance at 61.80% at $0.3918. As the growing bullish influence is an uptrend continuation, the 50 and 200 EMA in the 8-hour chart are on the verge of a golden crossover.
Furthermore, the MACD and signal lines are on a bullish trend with a surge in positive histograms. Hence, the technical indicators in the 8-hour chart support the possibility of an uptrend in Ethena.
Ethena’s Proposes $SOL as Backing Asset for $USDe
The massive surge in the $ENA token comes with the recent proposal of the Ethena team to add the $SOL token as a backing asset for $USDe. This mechanism will be similar to the hedging mechanism currently used by Ethena for Bitcoin and Ethereum perpetual futures.
The proposal will also include BNSOL, Binance Liquid Stake $SOL, bbSOL, and Bybit Liquid Stake $SOL as backing assets for $USDe. The Risk Committee will decide by conducting a unanimous vote seven days after the proposal.
Will Ethena’s $ENA Price Hit $0.50?
The bullish trend in Ethena could continue with a post-retest reversal of the bullish pattern breakout. According to the Fibonacci levels, the upcoming price targets for the $ENA recovery rally are at 78.60% and 100% Fibonacci levels, at $0.4431 and $0.5086, respectively.
On the flip side, the support levels present are $0.3557 and $0.3196.