ENA Price Analysis: Can It Hit an All-Time High?

Ethena maintained a strong comeback as its assets jumped to a record high on the heels of President-elect Donald Trump's World Liberty Financial (WLFI) buying the token.

World Liberty Financial (WLFI) purchased Ethena (ENA) tokens, boosting its market cap to a record $3.36 billion.

The ENA price soared, reaching a high of $1.20, fueled by the recent purchase of 509,955 ENA tokens by World Liberty Financial. This purchase, valued at over $589,000, contributed to the Ethena (ENA) rally.

According to Nansen data, World Liberty Financial, a company that raised over $72 million in a token sale, also owns significant amounts of Ethereum (ETH), CBBTC, Tether, USD Coin (USDC), Chainlink, and AAVE.

notably, World Liberty Financial is backed by Justin Sun, the founder of Tron (TRX).

Moreover, the total value locked (TVL) in the Ethena ecosystem also played a role in its price increase. DeFi Llama reported that the TVL surged to over $5.84 billion.

This growth pushed USDe, a yield-earning stablecoin native to Ethena, to become the third-largest stablecoin after Tether and USDC.

In the last 30 days, USDe's market valuation has soared by over 83%.

The ENA price also benefited from decreasing odds of the USDe stablecoin de-pegging in 2024.

Polymarket data indicated a mere 2% chance of the token dropping below 90 cents, similar to TerraUSD's (UST) de-peg in 2022.

However, there have been concerns regarding USDe because, like UST, it is not backed by any fiat currencies.

Instead, it functions as an algorithmic coin, paying a 27% yield and maintaining its peg by hedging the delta of spot assets during mining.

A glance at the daily chart reveals a powerful bullish trend for the ENA price over the last few months. It rallied from a low of $0.20 in September to reach a high of $1.20, its highest level since April.

The coin's price remained above the 50-day and 25-day Exponential Moving Averages throughout this period, indicating sustained buying pressure.

An interesting observation is the formation of a potential cup and handle chart pattern, with the upper handle resistance at $1.5210.

This continuation pattern, if confirmed, could propel the coin further up the price ladder.

Hence, expect Ethena to continue its bullish momentum, with bulls aiming for $1.5210, presenting a 33% upside from current levels.

A drop below the support at $0.90 would, however, invalidate this bullish outlook.