ENA Becomes the Top Altcoin Gainer, Here's Why

ENA, the native token of the decentralized finance (DeFi) protocol Ethena, has become the top altcoin gainer in the past 24 hours

ENA, the native token of the decentralized finance (DeFi) protocol Ethena, has emerged as the top altcoin gainer in the last 24 hours, recording an impressive 8.50% price increase.

This achievement is particularly noteworthy given the broader crypto market downturn, during which many altcoins have experienced double-digit losses. Here's a closer analysis of the factors contributing to ENA's outperformance and what could be next for the token.

Several factors have played a role in ENA's positioning as the top altcoin gainer today. The most significant development is Donald Trump's World Liberty Financial (WLFI) partnership with Ethena Labs.

In addition to partnering with Ethena, WLFI has also made substantial investments in the altcoin. On December 15, the project purchased 509,955 ENA using $500,000 USDC. At ENA's current value, that investment has grown to $584.44 million.

notably, WLFI isn't the only major entity accumulating ENA. According to Lookonchain, a prominent crypto whale purchased 8 million tokens valued at $9.20 million from Binance and transferred them to non-exchange wallets.

If this whale accumulation continues, it could exert upward pressure on ENA's price, potentially pushing the token to a high of $1.15.

To assess ENA's potential as a top altcoin gainer, BeInCrypto conducted an analysis using the In/Out of Money Around Price (IOMAP) metric. The IOMAP groups addresses into three categories: those in profit at the current price, those holding at unrealized losses, and addresses at the breakeven point.

A higher volume of addresses at an accumulation range strengthens support. On the other hand, a higher volume of addresses at a resistance range signals potential hurdles.

As evident in the data, around 2,150 Ethena addresses accumulated 93.46 million tokens at an average price of $1.13, providing stronger support at that price range. In comparison, the volume of addresses between $1.15 and $1.32 is lower, indicating potential resistance. Given these factors, it's likely ENA's price could break through these levels in the short term.

On the daily chart, Ethena's price continues to trade within an ascending channel. An ascending channel is a pattern created by drawing two upward trendlines: one above the price action to represent resistance and one below the price to represent support.

The price moves between these two parallel lines, often indicating a bullish trend with higher highs and higher lows. Should ENA fail to drop below the lower support trendline, then the price could rise beyond $1.36.

If that happens, the altcoin is likely to hit $2 in the short term. However, a breakdown below the support line could invalidate this forecast. In that scenario, ENA top altcoin gainer status might fizzle, and the price might drop to $0.72.