Ethena price has crashed substantially in the past few days, moving from this month’s high of $0.8530 to $0.6350 today. This crash coincided with the ongoing bearish performance in the broader crypto market. However, its fundamentals and technicals point to an eventual rebound.
Ethena Price to Rebound as Smart Money Investors Buy
One of the most important bullish catalysts for the ENA price is that smart money and whale investors have been purchasing it over the past few days. Data shows that smart money investors, who have a long track record of executing profitable trades, bought ENA tokens worth over $3 million in the last 7 days.
These purchases make it the most bought token in the crypto market in this period. Some of these investors then sold coins worth over $1.25 million, resulting in a net flow of $1.8 million. The same trend has happened among whale investors who continue their buying spree this year.
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Ethena price may also benefit from its network growth. Data shows that the total value locked in the network has reached a record high of $12.46 billion, representing a notable improvement from the year-to-date low of $5.8 billion. Most of the TVL is in Ethen USDe, which has over $11 billion in assets and USDtb with $1.47 billion.
Ethena’s growth has made it one of the most profitable networks in the crypto industry. Its annualized fees jumped to over $1.35 billion, while its earnings soared to $571 million. As such, from a valuation standpoint, it seems like the ENA price is highly undervalued.
ENA Price Technical Analysis
The daily timeframe chart shows that the ENA price has pulled back in the past few days. It has formed a descending channel, which is part of the bullish flag pattern. This pattern consists of a vertical line and a channel that resembles a hoisted flag.
Most notably, the coin’s Murrey Math Lines show that it is yet to get to the extreme overshoot level. Instead, it is hovering at the strong pivot point of reversal at $0.60.
As such, it is likely that the ENA price will rebound and initially retest the year-to-date high at $0.8530, followed by the extreme overshoot and the psychological point at $1.
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