Ethena Price Forecast: ENA eyes further gains as the bullish rally hits near six-month high

Ethena (ENA) edges higher by over 1% at press time on Monday, as it consolidates after hitting a nearly six-month high with its fifth consecutive green candle. The Open Interest (OI) and Total Value Locked (TVL) on Ethena, with its rising stablecoin market capitalization, is driven by the recent Anchorage Digital deal to offer a product fully compliant with the US GENIUS Act. The technical outlook hints at extended gains as bulls could target the $1 psychological level.

Ethena TVL adds $940 million in a week, hitting a record high 

DeFiLlama data shows the TVL on Ethena has surged to $7.71 billion, up from $6.25 billion last week. The addition of digital assets worth nearly $1.46 billion on the network within a week indicates the growing network activity. 

Ethena TVL. Source: DeFiLama

Out of the Total Value Locked, the USDe stablecoin dominates 73.09% share worth $5.51 billion. Investors must pay close attention to Ethena as it ramps up its efforts to meet the institutional demand for stablecoins compliant with the US regulatory framework. 

Ethena Token Breakdown. Source: DeFiLama

Optimism spurs in ENA derivatives as Open Interest hits $1.35 billion

Coinglass’ data shows the ENA Open Interest rising to $1.35 billion, a record high, up from $1.26 billion on Sunday. The sudden spike in OI reflects a capital influx in ENA derivatives, a sign of increased interest from investors. 

ENA Open Interest. Source: Coinglass

Ethena bulls target $1 amid a Golden Cross

Ethena holds over 1% gains so far on Monday after reaching a nearly six-month high of $0.7000 earlier in the day. ENA extends the bullish run above the $0.6576 resistance level, with bulls targeting the $0.7982 level, last tested on January 31. 

If ENA marks a daily close above this level, investors could witness the altcoin rising towards the $1.0000 psychological level. 

The Golden Cross between the 50-day and 100-day Exponential Moving Averages (EMAs) signals a rising bullish shift in the short-term trend. Investors may view a possible upcoming 50-day and 200-day EMA Golden Cross as a buy signal, as it highlights the short-term bull run outpacing the longer-term trend.

The Relative Strength Index (RSI) reads 82 on the daily chart, pointing at overbought conditions amid intense buying pressure. Such a condition often leads to a bearish reversal as buying pressure fades due to a profit-booking spree. 

Still, the Moving Average Convergence Divergence (MACD) indicator displays a rising trend in green histogram bars, suggesting heightened bullish momentum. 

ENA/USDT daily price chart.

On the flip side, a reversal in ENA below $0.6576 could test the $0.5446 support level, marked by the February 2 low.