Ethena Surges in TVL Rankings as ENA Targets $1.3 Breakout – Here’s Why Traders Are Buzzing

Ethena's TVL rockets up the charts while ENA flirts with a $1.3 breakout—just as the 'stablecoin skeptics' start sweating.

Move over, legacy finance. The protocol's climbing rankings prove DeFi's yield engines aren't just surviving—they're thriving.

Watch those shorts scramble if ENA punches through resistance. After all, nothing terrifies TradFi quite like a token that actually delivers utility.

• TVL soars to $7.72 billion, driven by the USDe dominance and expectations for the Stablecoin X launch. 
• Strong RSI and MACD momentum continues to hold ENA firm above key support, with the $1.30 in sight. 
• Volume and open interest decrease, but the funding rate is positive, indicating steady upside.

Ethena (ENA) is on the verge of a breakout but currently experiencing a decline in its price with the overall market. The ENA price over the last 24 hours is down by 7.4%, but over the last week it is up by 21.06%.

At the time of writing, ENA is trading at $0.5767 with a 24-hour trading volume of $921.92 million, down by 17.48% over the last 24 hours. The coin has a market capitalization of $3.66 billion, which is also down by 7.2%.

The general market trend is now turning from a bullish to bearish phase as Bitcoin has started its downward momentum. The overall market is impacted by this movement, but ENA is still expecting a bullish reversal.

USDe Drives Ethena’s Surge With Stablecoin X Incoming

Crypto analyst CryptoRank.io on X revealed that Ethena Labs achieved tremendous traction, with its Total Value Locked (TVL) of $7.72 billion, up 40% since July 1, propelling the protocol to the all-crypto projects ranked #8 by TVL.

The uptick is greatly driven by the market dominance of the USDe, Ethena’s self-created synthetic dollar, that now represents 73% of the entire platform value, an indication of greater confidence in its usability and stability throughout DeFi. 

The interest among investors is also boosted by the forthcoming release of Stablecoin X, the product that has been long-awaited to bring better capital efficiency and yield mechanics.

The early market build-out prior to the product release is a sign of gaining confidence that the Ethena Network will redefine the market for stablecoins and become an even larger liquidity node in the decentralized finance landscape. 

Ethena Eyes $1.30 as Momentum Indicators Flash Green

According to the technical analysis, momentum indicators are in favor of the breakout, as the RSI is 65.17 and the MACD remains in the uptrend, hinting at upside momentum. The earlier RSI high of 74.54 means recent overheating is gone and is making room for healthy price movements. The MACD line remaining above its signal confirms continued bull bias in the absence of exhaustion.

From the price action standpoint, ENA is still firm above its new support in the range of $0.44 and $0.50. The range now is a support buffer for the pullbacks. This MOVE follows a breakout from accumulation, signaling renewed bullish strength and increasing demand from buyers.

With the momentum of the price toward the resistance of $0.75, if the price penetrates the resistance, then the price will target its subsequent resistance range of about $1.3.

Ethena Derivatives Points to Stable Upside Bias

On-chain data hint at a short-term cooldown. According to market signals, the trading volume has dropped 18.42% down to $2.80 billion, while open interest fell 9.06% down to $1.09 billion. This signals lesser participation from the speculative investors, most likely due to the profit-taking after the recent rally.

However, the OI-weighted sentiment still remains positive at 0.0035%, indicating that longs continue to outnumber short positions in the derivatives markets. This indicates that the sentiment is broadly bullish. 

But the low funding rate means that it is not being fueled by reckless leverage, in turn suggesting a more sustainable and less volatile trend, rather than speculative overheating.

Also Read: Ethena (ENA) Hits Six-Month High $0.5885, Ready for $1?