Ethena (ENA) Market Analysis: Surge in Whale Activity Impacts Market Dynamics

Ethena is a financial protocol built on the Ethereum blockchain, designed to provide a synthetic dollar solution that operates independently of traditional banking systems.

Ethena, a financial protocol built on the Ethereum blockchain, is designed to provide a synthetic dollar solution that operates independently of traditional banking systems. Deribit, a top crypto derivatives exchange, plans to integrate Ethena's USDe stablecoin as margin collateral in early January 2025, pending regulatory approval. This move aims to enhance trading options by including USDe in Deribit's cross-collateral pool, allowing users more flexible trading strategies. The integration demonstrates growing confidence in USDe as a stable and viable digital asset, designed to maintain its value against the U.S. dollar.

Despite facing challenges like negative funding rates, USDe's supply remains strong at around $3.09 billion, showing resilient demand. On November 19, USDe experienced a significant inflow of $119 million in one day, contributing to a total of $1 billion in inflows over the past month and bringing its market cap to about $3.44 billion. This indicates a recovery and growth trend for the protocol as it approaches its all-time high of $3.6 billion.

In the past week, Ethena has experienced a surge in whale activity impacting its market, especially for its governance token, ENA, and its synthetic dollar, USDe. The number of large transactions over $100,000 increased dramatically from 23 to 128, showing growing interest from big investors. Large holders have accumulated about 5.4 million ENA tokens worth around $2.3 billion. This accumulation marks a significant rise in whale holdings, indicating a positive outlook for ENA.

Overall, this trend suggests that large investors are becoming more confident in the Ethena ecosystem. ENAUSD is trading flat after a nice pullback. It recovered above $0.60 after a minor sell-off, and the pair holds well above the short-term (34 and 55 EMA) and long-term moving averages. It hit a low of $0.5571 yesterday and is currently trading around $0.6389.

The bullish invalidation can happen if the pair closes below $0.260. On the lower side, the near-term support is $0.550. Any break below targets 0.4350/0.4350/0.370/0.300/.260. The immediate resistance stands at around $0.5375. Any breach above confirms a minor pullback. A jump to 0.6350/.750 is possible. A surge past $0.75 will take it to $1.

It is a good strategy to buy on dips around $0.600 with a stop-loss around $0.4350 and a target price of $1.