A golden cross has appeared on Ethena’s daily chart, and the last time this pattern emerged, ENA surged by more than 80%.
According to crypto.news, Ethena climbed 16% to reach an intraday high of $0.85 on Monday, August 11. This pushed its weekly gains to over 35%, while its 30-day gains approached nearly 150%.
Ethena’s market capitalization has increased to $5.4 billion, although its daily trading volume has slightly decreased, with over $1.4 trillion worth of ENA traded among investors.
Why did ENA rally today?
ENA’s rally today is likely driven by improved investor sentiment following a major milestone: USDe, its synthetic stablecoin, surpassed $10 billion in circulating supply. Remarkably, this was achieved just 500 days after USDe’s launch, making it one of the fastest-growing stablecoins in the crypto space.
In addition to the strong growth of its stablecoin, ENA’s surge has been fueled by investor excitement over Ethereum breaking past the $4,000 mark—a psychological resistance it struggled to overcome since December last year.
Ethereum has gained over 20% in the past week, significantly outperforming Bitcoin, which rose less than 7% during the same period.
Strong rallies in Ethereum often bode well for leading Ethereum-based projects. Since Ethena’s collateral reserves and hedging strategies are heavily ETH-based, Ethereum’s recent strength has boosted the valuation of the protocol’s reserve, reinforcing confidence in USDe’s stability. Consequently, ENA tends to move in close correlation with Ethereum.
Another bullish factor is rising demand for ENA in Korean markets. According to community member Ponyo on X, Korean investors have been steadily increasing their exposure to Ethena over the past few weeks.
ENA price analysis
ENA broke out of a descending parallel channel in early July as investor demand surged. Since then, the price has soared over 200% to $0.81 at the time of writing.
On the daily chart, the 50-day simple moving average has crossed above the 200-day simple moving average, creating a “golden cross” — a pattern that often indicates the beginning of a strong uptrend. The last time ENA formed a golden cross in late November, it surged more than 87%, reaching its December high of $1.33.
The current price structure closely resembles that of the previous period, indicating the potential for a similar rally to unfold.
If ENA were to match the percentage gains from the November rally, the projected target would be around $1.14.
Momentum indicators also supported a bullish outlook at press time. The MACD line had crossed above the signal line, a move typically seen as confirmation of upward momentum, signaling that buyers remain in control. Meanwhile, the RSI has entered overbought territory following ENA’s recent sharp gains.
Although this condition can sometimes lead to short-term pullbacks, strong rallies supported by solid fundamentals often maintain overbought levels for extended periods. Still, minor corrections may happen before ENA embarks on its next upward move.
