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Ethena token stabilized after falling sharply in recent days following Spark’s announcement of stablecoin integration.
Ethena ($ENA) rose to $0.83 on Jan. 14, recovering from this week’s low of $0.7255. Despite the rebound, the token remains 35% below its highest level this year and has formed a risky chart pattern that suggests a potential further retreat.
Spark, the 13th-largest player in the decentralized finance, industry by assets, announced it would integrate Ethena’s $USDe (USDE) and sUSDe stablecoins into the Spark Liquidity Layer. As part of the integration, Spark Liquidity Layer will allocate stablecoins to Ethena, with plans to increase the allocation to $1.1 billion.
“We see $USDe as an incredibly powerful primitive for the best DeFi applications and builders today. Ethena’s integration with Spark Liquidity Layer represents a major move towards enhancing the accessibility of $USDe and sUSDe, allowing more users to benefit from crypto-native assets.”
Ethena has emerged as one of the biggest players in the crypto sector. Its $USDe stablecoin currently has a market cap of over $5.79 billion, making it the fourth-largest in the space. Unlike Tether and USDC, $USDe offers holders a monthly yield, which is currently at 11%. Ethena’s staked version, sUSDe, has over $4.1 billion in assets.
Spark is also a prominent player in the industry, allowing users to save and borrow stablecoins. Its USDS stablecoin has a market cap of $6.13 billion, making it the third-largest in the sector.
Ethena price technical analysis
The daily chart shows that $ENA has been in a strong downward trend over the past few weeks, dropping from a high of $1.3085 earlier this year to the current $0.8345.
The token has fallen below the 50-day and 25-day exponential moving averages, signaling that bears remain in control.
Most notably, Ethena has formed a double-top chart pattern at $1.3085, with the neckline at $0.8455. A double-top is a widely recognized bearish indicator.
Given this pattern, $ENA is likely to continue declining as sellers target the next psychological level at $0.50 — about 40% below the current price. However, a move above the key resistance level at $1 would invalidate the bearish outlook.