Is Ethena (ENA) Price on the Verge of a Breakout? Bulls Defend Key Support as Metrics Turn Bullish

Ethena (ENA) price is showing signs of a potential breakout as bulls defend a key support range, while on-chain metrics are indicating renewed interest in the token.

What Happened: ENA price is currently trading at $0.4273, showing a 10.77% gain for the day. Its trading volume has also increased by 75%, placing it among the top five gainers in the crypto market today.

The token faced rejection at the $0.45 level, leading to a pullback that brought ENA price to test the $0.425 zone, which had previously acted as resistance during the token's ascent.

Technical analysis reveals that the immediate support range for ENA price is between $0.40 and $0.425. The next resistance is located at the $0.50 mark, where ENA price faced rejection during its upward journey.

The MACD indicator is flattening, suggesting reduced momentum in price movements. Meanwhile, the stochastic RSI is emerging from the overbought zone, paving the way for either a rebound or further consolidation.

Why It Matters: Data from DeFiLlama shows that Ethena's total value locked (TVL) currently stands at $4.807 billion. The protocol has undergone two significant growth cycles over the past year.

ENA TVL began decreasing in March, hitting a low of $3.69 billion. Afterward, TVL started increasing again, and by yesterday, it had risen to $4.48 billion. This change was also highlighted by CryptoED in his post.

The rise in TVL indicates renewed activity from users on the Ethena platform. Historically, such movements in TVL have coincided with increased buying interest in ENA, especially when technical patterns confirm the strength of support.

ENA has a market capitalization of $2.5 billion and a fully diluted valuation of $6.443 billion. Its daily trading volume has reached $650 million. ENA also has liquidity of $15.54 million and has generated over $118 million in annualized fees, despite having zero declared revenue.

This set of metrics showcases active participation and capital commitment. While ENA's valuation is still high, the sustained usage and revenue generation capabilities of the platform continue to draw attention to the token's price behavior and immediate technical trends.

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Analyst Thoughts: CryptoED's analysis suggests that ENA price is positioned for a potential upward move if the support range holds and technical indicators continue to favor a modest recovery.

His post, which refers to the rising TVL and current chart patterns, adds to existing technical signals that imply consolidation within a key zone, paving the way for a breakout.

Combined with growing volume and steady platform activity, the outlook remains focused on whether bulls can maintain control above the $0.425 level and retest the $0.45 resistance area in the short term.

"Ethena has been holding up well as it trades above the $0.425 support. TVL is also starting to rise again after a correction," the analyst stated.

If Ethena can break above the $0.45 resistance, it could continue to rally towards the $0.50 level, which is the next major resistance. The MACD indicator is also flattening, which suggests that the momentum in the market is decreasing.

However, the stochastic RSI is moving out of the overbought zone, which could open up the possibility for either a rebound or further consolidation in the near term. Overall, the technical indicators suggest that ENA price could be due for a move in either direction.

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(Image: Ethena)