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Ethena maintained a strong comeback as its assets jumped to a record high on the heels of President-elect Donald Trump’s World Liberty Financial ($WLFI) buying the token.
Ethena ($ENA) token jumped to a high of $1.20, its highest level since April 14, and 525% above its lowest level this year. This rally has pushed its market cap to over $3.36 billion.
Ethena soared after World Liberty Financial accumulated 509,955 $ENA tokens valued at over $589,000. The company, which raised over $72 million in a token sale, also owns Ethereum ($ETH), CBBTC, Tether, USD Coin Chainlink, and AAVE (per Nansen data).
$WLFI is backed by Justin Sun, the founder of Tron (TRX).
Ethena also jumped after the total value locked in its ecosystem jumped. According to DeFi Llama, its total value locked jumped to over $5.84 billion. This growth has made $USDe, its yield-earning stablecoin the third-biggest one after Tether and USDC. Its valuation has jumped by over 83% in the last 30 days.
$ENA price has also rallied as odds that the $USDe stablecoin will de-peg in 2024 fell. According to Polymarket, there is just a 2% chance that the token will drop below 90 cents as Terra USD did in 2022.
There have been concerns about $USDe since, like UST, it is not backed by any fiat currencies. Instead, it is an algorithmic coin that pays a 27% yield, while its peg is maintained by hedging the delta of spot assets during mining.
Ethena price analysis: can it hit an all-time high?
The daily chart shows that the $ENA price has been in a strong bullish trend in the past few months. It has rallied from a low of $0.20 in September to $1.2, its highest level since April.
The coin has remained above the 50-day and 25-day Exponential Moving Averages, a sign that bulls are in control.
Ethena is also forming what looks like a cup and handle chart pattern whose upper side is at $1.5210. A C&H is a popular continuation sign.
Therefore, the coin will likely continue rising as bulls target $1.5210, which is about 33% above the current level. A drop below the support at $0.90 will invalidate the bullish view.