A golden cross on the daily chart has flipped the mid-term trend bullish for Ethena (ENA), setting the stage for a potentially much larger move ahead.
In just the past week, ENA has jumped 33%, making it one of the strongest performers in the top 100 as retail liquidity pours back into altcoins.
These gains follow wider market warming catalysts, as a Trump-signed executive order granted crypto assets exposure to the $9 trillion 401(k) retirement investment market.
The macro narrative takes the forefront, however, with U.S. labour market and inflation data reports this week likely to influence the timeline for potential interest rate cuts.
Speculators anticipate up to three rate cuts before year-end, starting as early as September, with the potential to stimulate new inflows into risk assets like cryptocurrencies.
Retail liquidity is rallying behind Ethena as the DeFi play of choice, as the top performer in the sector over the last 90 days, as bullish fundamentals stoke investor sentiment.
Its core product has become the fastest-growing stablecoin, surpassing $10 billion in circulating supply just 500 days after launch, outpacing market leaders USDT and USDC.
Much of this growth has come over the past 30 days, with supply up 95% to $10.431 on the back of the U.S. GENIUS Act establishing a formal regulatory framework for stablecoins.
ENA is also riding tailwinds from ETH breaking above $4,000, a key psychological barrier it had struggled to clear since December, adding to bullishness for the Ethereum-based project.
As bullish narratives and fundamentals align for Ethena, its technical setup now mirrors the same pattern that fueled its late-2024 rally.
The 50SMA has crossed above the 200SMA in a golden cross, signaling a decisive mid-term trend shift after months of trading below the long-term average.
The last time this happened, the Ethena price rallied 120% rally. Should it repeat this time around, Ethena could push to retest its all-time high around $1.50 — another 94% up from here.
If flipped to support, this level would confirm the breakout ascending channel brewing since mid-2024, setting sights much higher at $8 for a potential 950% rally.
Momentum indicators back the bullish case. The MACD line has once again crossed above the signal line, reinforcing the outlook for a sustained mid-term uptrend on the daily chart.
However, the RSI has made a sharp reversal after breaching the oversold threshold above 70, suggesting seller exhaustion and a likely near-term correction to find stronger footing.
In the near term, a retracement toward $0.70 appears to be a probable price floor as the RSI cools and markets digest potentially bearish labor market and inflation data.
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