Is the Hype Over for Ethena? ENA Price Falls 35% While This Fresh Bitcoin Venture Starts to Capture Market Interest
The governance token for synthetic dollar protocol Ethena (ENA) has shed 35% over the last fortnight to trade at$0.919 as of Wednesday, April 24, 2024.
That makes for some of the heaviest losses for a top 100 cryptocurrency in the last fortnight. Losses look set to continue, too, as ENA shed about 9% in the last 24 hours.
These figures reflect a token that’s having a rougher ride than market leadersBitcoin(BTC) andEthereum(ETH).
Bitcoin only declined by 3.4% over the fortnight. Ethereum fared worse, shedding about 7% over the fortnight, but both have appreciated a little bit in the last week.
ENA began trading on April 2 at around 79 cents and it rallied almost consistently over the next 9 days to set a high of $1.52 on April 11.
Today’s price represents a 39% pullback and there are signs that it could continue.
ENA is trading a little short of its 30-day moving average and its Relative Strength Index (RSI) is 35 and falling. Should it fall below 30, ENA will be oversold.
The CryptoQuant report warning of a potential USDe de-pegging recalls the fate of the so-called algorithmic stablecoin UST.
Once one of the largest cryptocurrencies in the world, the dollar-pegged stablecoin slipped its peg in May 2022 when a bank run caused many to exit their positions too quickly, sending the algorithm into a hyper-inflationary tailspin that quickly drained billions from the ecosystem and send the industry into a year-long recession.
In the post-mortem analysis, many highlighted that analysts had previously warned of the possibility of an exponentially catastrophic de-pegging. However, the early warnings had fallen on mostly deaf ears.
Crypto is a different field in 2024. Because of the heavy lessons learned over the last two years, there
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