The price of Ethena Coin (ENA) is rising, this is the reason!

Bittime - On July 24, the price of Ethena (ENA) coin jumped more than 12%, rising from $0.44 to almost $0.50. This increase continued the upward trend from the previous day and recorded a total increase of 20%. What caused this sudden increase, and can the ENA price continue to rise?

What's Driving This Increase?

Ethena's latest price increase appears to be influenced by significant developments involving BlackRock and other large financial entities.

On July 16, the Ethena Foundation proposed allocating their treasury funds to real-world assets as part of a new RWA (Real-World Asset) investment plan to further collateralize their synthetic stablecoin, USDe. This step aims to strengthen USDe's position as a stable and reliable asset.

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Then, on Monday, July 22, Securitize, representing BlackRock's BUIDL fund, submitted a proposal to the Ethena Foundation to invest $34 million of Ethena's reserves into tokenized US Treasury securities. This investment is intended to provide a stable yield of around 5% and diversify Ethena's holdings into real world assets (RWA). This option is particularly attractive because it offers a low-risk way to generate returns for Ethereum's reserve assets.

Other companies, including Steakhouse Financial, have also shown interest in investing in Ethena's reserve assets, further validating the platform's potential.

These developments mark a significant step in integrating traditional finance with decentralized finance (DeFi), demonstrating growing trust and interest in blockchain-based financial solutions. The involvement of large financial players highlights the potential for stablecoins like USDe to serve as reliable, yield-generating assets in the broader financial ecosystem.

ENA Price Analysis

ENA price reached an all-time high of $1.52 on April 11 but has since experienced a downward cycle. On July 5, ENA fell to $0.35, marking a decline of 77%. However, prices have shown signs of recovery.

Source: TradingView

On July 20, ENA briefly reached the $0.50 level and revisited it on July 24. As the price approaches the descending resistance level, two potential scenarios could occur.

If the recovery since July 5 signals the start of a new bullish phase, ENA is likely to break the resistance level. This breakout could initiate the formation of a five-wave pattern, signaling the end of a prolonged bear market. In this case, ENA could reach a new price of $0.62 before pulling back to test the resistance it has broken out as support, potentially resuming its upward trajectory.

Conversely, if the current resistance level rejects ENA's attempt, the recent rise may be a three-wave move, indicating that ENA has not yet completed its bearish phase. This could lead to further declines, potentially dropping to $0.25 before a new bullish phase begins.

Based on RSI and MACD analysis on the four-hour chart, combined with the fundamental factors driving the latest price increase, a bullish scenario seems more likely.

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Conclusion

The recent rise in the price of Ethena coin (ENA) shows the huge potential this project has, especially with the involvement of big players like BlackRock. However, it is important for investors to remain alert to market fluctuations and always consider fundamental and technical analysis before making investment decisions. With this latest development, Ethena has a great opportunity to continue to grow and become an important player in the DeFi ecosystem.

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