Ethena Price Chart Reveals Target Despite Smart Money Buying

Ethena price has dropped sharply in recent days. It fell from a monthly high of $0.8743 to a low of $0.5646. It has formed the risky double-top pattern. This points to more downside despite the ongoing smart money buying and total value locked (TVL) growth.

Ethena Price Has Formed a Double-Top Pattern

There is a risk that the ENA price will have more downside in the coming weeks. This could be seen after it formed a double-top pattern at $0.8557. It has already moved below the neckline of this pattern at $0.6026, its lowest level on August 26.

Ethena price has also plunged below the 100-day Weighted Moving Average (WMA). This confirms the bearish breakout. It has also dropped below the strong, pivot, and reverse point of the Murrey Math Lines tool.

The Average Directional Index (ADX) indicator has risen to 21 and is pointing upwards. A figure of 20 and above usually indicates that the trend is strengthening. ENA price has also moved below the 38.2% Fibonacci Retracement level at $0.6157.

Therefore, the likely scenario is that it continues its strong sell-off in the coming days. To estimate the target price, analysts measure the gap between the double-top at $0.8557 and the neckline at $0.6025. This distance helps project the potential downward move in price.

One then measures the same distance from the neckline, which brings the target price to $0.4217. The bearish Ethena price forecast may become invalid. This may occur if it rises above the 23.6% Fibonacci Retracement level at $0.7085.

Ethena Price to Crash Despite Strong Fundamentals

The ongoing ENA price crash will happen because of the crypto market sell-off. Bitcoin and most altcoins have experienced a sharp decline this week.

The total crypto market cap dropped from over $4.3 Trillion earlier this month. It now stands at $3.85 Trillion, reflecting widespread losses.

Ethena is showing signs of growing investor confidence. Market sentiment appears increasingly bullish for the Ethena price. Nansen data shows that smart money investors have recently continued to accumulate coins.

These investors now hold 159 billion tokens, a 9% monthly increase. Their holdings have jumped from a low of 146 billion tokens on August 26. Smart money investors are followed closely because they are known for executing profitable trades.

Usually, these investors buy low and sell when the token rises. Meanwhile, Ethena whales have continued boosting their positions in the past few weeks. They have increased their positions to 54.6 million, up from 48 million on the same day in August.

One of the most critical metrics on Ethena is that investors are not selling their tokens. Instead, these investors are moving their tokens to self-custody. With this, exchange balances have fallen by over 22% in the last 30 days. They have moved from a high of 6.52 billion earlier this month.

Nansen data shows that Ethena Labs primarily caused the exchange outflows. It has moved over 934 million tokens in the last 30 days.

Ethena Network DeFi TVL is Soaring

One potential reason why whales and smart money investors are buying the coin aggressively is its growing fundamentals.

Data compiled by DefiLlama shows that the total value locked in the network has gone parabolic in the past few weeks. This was driven by the USDe stablecoin. Ethena now has over $14.4 Billion, making it one of the biggest players in the decentralized finance industry.

The growth has been in a strong uptrend after bottoming at $4.72 Billion in April. Ethena USDe has over $14.34 Billion, while Ethena USDtb has over $1.82 Billion. At the same time, the recently launched tsUSDe has $25.7 Million.

The other bullish catalyst for the Ethena price is that its network fees and revenues are doing well. It has made $666 Million in annualized fees and $54 Million in the last 34 days. These metrics and the token buyback mean that the coin will rebound once the ongoing shakeout ends.