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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.