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$ENA, the native token of the decentralized finance (DeFi) protocol Ethena, has become the top altcoin gainer in the past 24 hours, recording an 8.50% price increase.
This milestone is particularly notable as it comes during a broader crypto market downturn, during which many altcoins have suffered double-digit losses. Here’s a closer look at why $ENA is outperforming its peers and what could be next for the token.
Why Ethena Is the Top-Performing Altcoin
$ENA’s position as the top altcoin gainer today is due to several factors. The most significant one is Donald Trump’s World Liberty Financial ($WLFI) partnership with Ethena Labs.
In addition to collaborating with Ethena, $WLFI recently invested in the altcoin. On December 15, the project purchased 509,955 $ENA using $500,000 USDC. At $ENA’s current value, that investment has surged to $584.44 million.
Interestingly, $WLFI is not the only major entity accumulating $ENA. According to Lookonchain, a prominent crypto whale purchased 8 million tokens worth $9.20 million from Binance and transferred them to non-exchange wallets.
If this whale accumulation persists, it could create upward pressure on $ENA’s price, potentially pushing the token to a high of $1.15.
BeInCrypto conducted an analysis using the In/Out of Money Around Price (IOMAP) metric to evaluate $ENA’s potential as a top altcoin gainer. The IOMAP groups addresses into three categories: those in profit at the current price, those holding at unrealized losses, and addresses at the breakeven point.
A higher volume of addresses at an accumulation range strengthens support. On the other hand, a higher volume of addresses at a resistance range signals potential hurdles.
As shown in the data, around 2,150 Ethena addresses accumulated 93.46 million tokens at an average price of $1.13, providing stronger support at that price range. In comparison, the volume of addresses between $1.15 and $1.32 is lower, indicating potential resistance. Given these factors, it’s likely $ENA’s price could break through these levels in the short term.
$ENA Price Prediction: Upside Potential Strong
On the daily chart, Ethena’s price continues to trade within an ascending channel. An ascending channel is a pattern created by drawing two upward trendlines: one above the price action to represent resistance and one below the price to represent support.
The price moves between these two parallel lines, often indicating a bullish trend with higher highs and higher lows. Should $ENA fail to drop below the lower support trendline, then the price could rise beyond $1.36.
If that happens, the altcoin is likely to hit $2 in the short term. However, a breakdown below the support line could invalidate this forecast. In that scenario, $ENA top altcoin gainer status might fizzle, and the price might drop to $0.72.