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In a nutshell: $ENA surged this week (+35%), but there are mixed signals and the best time to buy would be by waiting for a drop—not buying now.

What’s happening with the price?
ENA is currently worth $0.275. It rose 5.3% in a day and 35% over the week. In the short and medium term (hours and days) the trend looks bullish (going up), but on the weekly view it looks bearish (it could drop). It’s like the car is accelerating on the short stretch but is getting closer to a wall ahead.

The best move according to the analysis
It’s not a good idea to buy at the current price ($0.275). The recommendation is to wait for it to fall to $0.2125 (23% less than now) and then buy, because at that point the risk vs. potential gain is good (nearly 2 to 1: you could make about twice what you risk). If it drops too much (down to $0.1815), you should exit to cut losses.

Important risks to watch
October 5: a large number of ENA coins will be unlocked (14% of the total circulating supply). When that happens, the price usually falls because there’s more supply.
September 30: an important economic data release in the U.S. (PCE, which measures inflation). If it comes in higher than expected, it typically affects negatively more volatile cryptocurrencies like ENA. The U.S. Federal Reserve recently raised interest rates and could raise them again, which generally doesn’t help cryptocurrencies.

About the project’s “fuel”
Ethena has a stablecoin called USDe. There’s a promise that if USDe grows to $7.5 billion, they would start using profits to buy back ENA (which pushes the price up). The issue is that USDe is currently at $4.94 billion, still far from that target, so this boost hasn’t kicked in yet.

Simple conclusion:

DylanTrader22

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