Ethena's ENA token has risen more than 7% over the past 24 hours, climbing from $0.18 to $0.20, according to AMBCrypto. Daily trading volume for the altcoin exceeds $405 million. Despite the gain, ENA has started to face rejection even as some analysts project further upside.
Fundamentals in focus
Analyst Lark Davies announced he had purchased Ethena tokens after detailed research, citing that the protocol has generated over $1 billion in real fees rather than emissions or printed tokens. According to Davies, almost none of that revenue had gone to ENA holders, but that is set to change as these fees will fund a buyback mechanism. Davies argues this could make Ethena the best bet on stablecoins and potentially better than Circle (CRCL) due to the upcoming buyback program.
Ethena's Total Value Locked (TVL) has grown by $1.32 billion since early August, and its most recent daily fees were over $4 million, per DefiLlama data cited by AMBCrypto.
Additionally, Janus Henderson Investors, which took a position in ENA in June, plans to use its staked USDe for cash management. This follows Ethena's integration of Janus Henderson's AAA CLO strategy. These are AAA-rated floating-rate collateralized loan obligation tranches, tokenized via Centrifuge (CFG), and are eligible backing assets for USDe. The move indicates traditional finance is showing interest in ENA.
Technical outlook
Ethena has been in a downtrend due to long liquidations and whale sales, but the price action may be shifting. ENA is currently bouncing off an Optimal Trade Entry (OTE) zone between the 0.618 and 0.786 Fibonacci retracement levels. The altcoin has reclaimed $0.20 but needs to flip the $0.215 level into support to confirm a bullish trend change. The MACD has turned bullish, suggesting it is pricing in the looming fundamental changes.
Furthermore, the CVD shows that over 23.76 million ENA were bought at press time. If the uptrend stays alive, $0.30 becomes the next target, while failure would cause a full retracement to $0.135.
Summary
Some analysts project a bullish trajectory for Ethena due to an upcoming buyback mechanism funded by fees. ENA was bouncing off $0.18 but needs to clear $0.215 as resistance to confirm a bullish trend shift.
