Ethena (ENA) Protocol Sees Surge in Whale Activity Ahead of USDe Integration With Deribit

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

Ethena, a financial protocol on the Ethereum blockchain, is set to have its synthetic dollar, USDe, integrated into Deribit's margin collateral early next year.

Pending regulatory approval, the move will see USDe join Deribit's cross-collateral pool, boosting trading options and enabling users to pursue more diverse strategies.

This development comes amid growing confidence in USDe's stability and viability as a digital asset pegged to the U.S. dollar. Despite encountering challenges such as negative funding rates, USDe's supply remains robust at around $3.09 billion, indicating sustained demand.

On November 19, the stablecoin experienced a significant inflow of $119 million in a single day, contributing to a total of $1 billion in inflows over the past month. As a result, USDe's market cap now stands at about $3.44 billion, indicating a recovery and growth trend as it approaches its all-time high of $3.6 billion.

This protocol is designed to operate independently of traditional banking systems. A recent analysis of on-chain activity reveals a surge in whale transactions impacting Ethena's market, particularly in its governance token, ENA, and synthetic dollar, USDe.

The number of large transactions (over $100,000) increased dramatically from 23 to 128, indicating growing interest from big investors in both ENA and USDe. Large holders also accumulated about 5.4 million ENA tokens, valued at 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.

Potential Support and Resistance Levels

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 0.6350/0.750 is possible. A surge past $0.75 will take it to $1.

Trading Strategy Recommendation

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.