Ethena (ENA) experienced a 71.14% rally from a September 14th low of $0.135 to a local high of $0.231 on September 20th. Despite Bitcoin breaking key resistance levels on Monday, ENA remained quiet, oscillating near $0.215. The DeFi protocol, which issues the synthetic stablecoin USDe, saw its stablecoin market cap grow by $71.4 million across the five largest issuers, with Ethena contributing $35.8 million in 24 hours. Since September 16th, $90 million in ENA has been staked, with nearly $1.26 billion locked to earn yield. The altcoin’s uptrend now faces a key obstacle at the $0.22 supply zone, where profit-taking is anticipated.
After forming a higher low of $0.135 on September 14th, Ethena [ENA] rallied by 71.14% to reach a local high of $0.231 on Sunday, September 20th. While Bitcoin [BTC] broke key resistance levels on Monday, ENA was relatively quiet, oscillating around the $0.215-level.
The DeFi protocol issues the synthetic stablecoin USDe, with ENA serving as the governance token. Recent reports indicated the stablecoin market cap grew by $71.4 million from the five largest issues, with Ethena contributing to a $35.8 million increase in 24 hours.
Since September 16th, $90 million in ENA has been staked, with a total of nearly $1.26 billion locked up to earn yield. These reports underline the confidence in the DeFi protocol, with investor sentiment highlighted in the altcoin’s price action.
After consolidating under $0.10 from June to August, Ethena bulls drove a convincing rally above $0.14, a resistance level that stretched back to February. In September, the price retested this level as support, and buyers drove another rally past $0.22.
The $0.22-$0.26 area had been a supply zone during January’s rally, trapping many late buyers before the altcoin’s nosedive. Therefore, many holders are only now returning to breakeven levels, and shorter-term holders who bought during the previous week’s rally would be looking to take profits.
The sell pressure at the $0.22 supply zone likely won’t be overcome in one try. ENA might need time to consolidate lower before the bulls are ready for the next impulse move higher.
The nearest liquidity levels noted were $0.232 to the north and $0.171, $0.178, and $0.188 to the south. In case of a pullback, it is likely that ENA will be drawn to the $0.171-$0.188-zone, which marks local highs from late August flipped to support.
