Ethena Surges: Whales Rush In as USDe Peg Crisis Fades Fast

Ethena Token Faces Pressure Amid USDe Stablecoin Woes

Ethena’s token price has been under pressure recently. The USDe stablecoin, linked to Ethena, briefly lost its peg. This event triggered a surge in bullish liquidations.

Despite the challenges, the developers assured users that USDe remains over-collateralized. They provided proof of reserves to restore confidence. The token price, currently at $0.3670, is up 156% from its Friday low. Though, it’s still 40% below its September peak.

Whales have been buying ENA during the downturn. According to Nansen, whale investors now hold 45.2 million tokens, up from 39.19 million on Friday. This buying spree suggests optimism about a potential rebound. The team published reports confirming the stablecoin’s stability, backed by assets like Bitcoin and Ethereum.

Technical analysis shows a bearish trend. The ENA price has fallen below key moving averages. A double-top pattern on the daily chart signals further declines. The price could test the $0.2221 level, a critical support zone.The top 100 addresses now hold 13.76 billion, indicating belief in its recovery. The developers shared proof of reserves, showing assets exceed liabilities. This clarity aims to reassure the market. The stablecoin’s reserves include holdings with major exchanges like Binance and OKX.

USDe’s reserves are audited weekly by firms like Chaos Labs and Chainlink. These audits ensure the stablecoin’s health. The token’s price action hints at more downside. The 50-day and 200-day moving averages point to continued weakness. A dead-cat bounce—a short-term rally followed by a deeper drop—could occur. The top 100 addresses increased their holdings, signaling long-term faith. The stablecoin’s backing includes Bitcoin and Ethereum,held by reputable platforms.

Whales’ interest is a positive sign. Yet, the price may face more pressure. The team’s swift response shows commitment to transparency. They aim to prevent further losses.

Whales’ interest in ENA suggests they see long-term potential.However, technical indicators point to continued downward pressure. The price may test the $0.2221 level,a key support zone. A dead-cat bounce—a short-term rally followed by a deeper drop—could occur.Investors should stay cautious.