DailySun
The Ethena token has stabilized after experiencing a sharp decline in recent days following the announcement of stablecoin integration by Spark.
Ethena (ENA) climbed to $0.83 on January 14, recovering from a low of $0.7255 earlier this week. Despite this rebound, the token is still 35% lower than its highest point this year and has formed a precarious chart pattern that indicates a possible further decline.
Spark, ranked 13th among decentralized finance platforms by assets, revealed plans to integrate Ethena’s USDe (USDE) and sUSDe stablecoins into its Spark Liquidity Layer. This integration will allocate stablecoins to Ethena, with an intention to increase the total allocation to $1.1 billion.
“We consider USDe to be an extraordinarily potent primitive for leading DeFi applications and developers today. Ethena’s integration with the Spark Liquidity Layer signifies a significant advancement in making USDe and sUSDe more accessible, enabling a broader range of users to take advantage of crypto-native assets.”
Ethena has positioned itself as a major player in the cryptocurrency landscape. Its USDe stablecoin boasts a market capitalization exceeding $5.79 billion, ranking it as the fourth largest in the field. Unlike Tether and USDC, USDe provides holders a monthly yield, currently estimated at 11%. Ethena’s staked version, sUSDe, holds over $4.1 billion in assets.
Spark also plays an important role in the industry, facilitating users’ ability to save and borrow using stablecoins. Its USDS stablecoin has a market cap of $6.13 billion, making it the third largest in the sector.
Technical Analysis of Ethena Price
The daily chart indicates that ENA has been in a consistent downward trend over the last several weeks, decreasing from a peak of $1.3085 earlier this year to its current price of $0.8345.
The token has fallen below both the 50-day and 25-day exponential moving averages, indicating that bearish sentiment remains dominant.
Critically, Ethena has created a double-top chart pattern at $1.3085, with the neckline positioned at $0.8455. This double-top pattern is a commonly acknowledged bearish signal.
Given this formation, it is probable that ENA will continue its descent as sellers aim for the next psychological level at $0.50, roughly 40% below the current valuation. Nevertheless, a rise above the significant resistance level at $1 would negate the bearish forecast.
