The Ethena token stabilized after falling sharply in recent days following Spark’s stablecoin integration announcement.
Ethena (ENA) rose to $0.83 on January 14, recovering from this week’s low of $0.7255. Despite the recovery, the token remains 35% below its high this year and has formed a risky chart pattern that suggests a possible further pullback.
Spark, the 13th largest player in the decentralized finance sector by assets, announced it would integrate Ethena’s USDe (USDE) and sUSDe stablecoins into the Spark Liquidity Layer. As part of the integration, Spark Liquidity Layer will allocate stablecoins to Ethena, with plans to increase the allocation to $1.1 billion.
“We see USDe as an incredibly powerful primitive for today’s top DeFi applications and builders. Ethena’s integration with Spark Liquidity Layer represents an important step toward improving the accessibility of USDe and sUSDe, allowing more users to benefit from crypto-native assets.”
Ethena has become one of the largest players in the crypto sector. The USDe stablecoin currently has a market cap of over $5.79 billion, making it the fourth largest in the space. Unlike Tether and USDC, USDe offers holders a monthly return, which currently stands at 11%. Ethena’s betting version, sUSDe, has over $4.1 billion in assets.
Spark is also a prominent player in the industry, allowing users to save and borrow stablecoins. The USDS stablecoin has a market capitalization of $6.13 billion, making it the third largest in the industry.
Technical analysis of Ethena prices
The daily chart shows that ENA has been in a strong downtrend in recent weeks, from a high of $1.3085 earlier this year to the current $0.8345.
The token has fallen below the 50 and 25 day exponential moving averages, indicating that bears remain in control.
Most notably, Ethena has formed a double-top chart pattern at $1.3085, with the neckline at $0.8455. A double top is a widely recognized bearish indicator.
Given this pattern, ENA will likely continue to decline as sellers target the next psychological level of $0.50 – around 40% below the current price. However, a move above the key resistance level at $1 would negate the bearish outlook.
