Date: Thu, Dec 19, 2024, 03:45 AM GMT
The cryptocurrency market within the last 12 hours has been bustling with significant events. Ethena (ENA), a synthetic dollar protocol, has captured attention with impressive gains of over 10%. This surge is largely attributed to its newly announced collaboration with World Liberty Financial (WLFI), a decentralized finance (DeFi) platform reportedly backed by former President Donald Trump.
Major Collaboration: Ethena x WLFI
Ethena and WLFI are set to embark on a long-term collaboration, starting with the integration of the yield-bearing token, sUSDe, into WLFI’s ecosystem. A key governance proposal has been submitted to include sUSDe as a core collateral asset in WLFI’s upcoming Aave instance. If this proposal passes, WLFI users will have the opportunity to earn sUSDe rewards alongside WLF token incentives.
This partnership could significantly strengthen Ethena’s position in the DeFi space, with sUSDe potentially becoming a cornerstone of WLFI’s lending and borrowing ecosystem.
Whales Accumulate ENA Amid Market Dip
Despite broader market negativity following the latest Federal Reserve (FED) meeting, ENA has shown remarkable resilience. The FED’s 0.25% rate cut was overshadowed by Federal Reserve Chairman Jerome Powell’s comments clarifying that the central bank is prohibited from owning Bitcoin, which briefly dampened market sentiment.
Meanwhile the recent pullback, which saw ENA drop from $1.33 to $1.00, crypto whales took advantage of the dip. According to crypto analyst @ali_charts, whales purchased over 36.55 million ENA tokens during this period, underscoring strong institutional interest.
Technical Analysis:
At the time of writing, ENA is bouncing strongly from the lower support of its ascending channel, gaining over 2% in the last 1 hour to trade at $1.19.
The chart reflects an ongoing bullish trend, with key resistance levels at $1.33 and $1.51. Breaking through these levels could set a new all-time high for ENA, representing a potential upside of over 27% from the current price.
What’s Next?
Ethena’s upcoming milestones, including its collaboration with WLFI, position it as a top contender for further gains. The broader recovery in the cryptocurrency market adds a layer of optimism, with major altcoins showing signs of upward momentum.
Investors are advised to watch for updates on the governance proposal and track price action near the $1.33 resistance level. A successful breakout could signal the start of a new leg up for ENA.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.