ENA, the native token of the decentralized finance (DeFi) protocol Ethena, has become the top altcoin gainer in the past 24 hours, recording an 8.50% price increase.
This milestone is particularly notable as it comes during a broader crypto market downturn, during which many altcoins have suffered double-digit losses. Here’s a closer look at why ENA is outperforming its peers and what could be next for the token.
Why Ethena Is the Top-Performing Altcoin
ENA’s position as the top altcoin gainer today is due to several factors. The most significant one is Donald Trump’s World Liberty Financial (WLFI) partnership with Ethena Labs.
In addition to collaborating with Ethena, WLFI recently invested in the altcoin. On December 15, the project purchased 509,955 ENA using $500,000 USDC. At ENA’s current value, that investment has surged to $584.44 million.
Interestingly, WLFI is not the only major entity accumulating ENA. According to Lookonchain, a prominent crypto whale purchased 8 million tokens worth $9.20 million from Binance and transferred them to non-exchange wallets.
If this whale accumulation persists, it could create upward pressure on ENA’s price, potentially pushing the token to a high of $1.15.
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 shown 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.