Ethena (ENA) extended its recovery for a second straight day as large investors increased their holdings and exchange balances fell to multi-month lows. Meanwhile, the project’s USDe stablecoin has maintained its peg, reinforcing investor confidence after last week’s volatility.
Ethena rebounds as USDe shows stability
Ethena’s token traded around $0.4700 on Saturday, recovering sharply from its monthly low near $0.1475. The rally lifted its market capitalization above $3.2 billion, supported by improving sentiment around the project’s stability mechanisms.
The rebound followed confirmation that USDe, Ethena’s algorithmic stablecoin, remains fully collateralized. According to data from the project’s website, USDe’s total supply stands at $12.18 billion, backed by $12.25 billion in reserves consisting of Bitcoin (BTC), Ethereum (ETH), and other liquid stablecoins.
Developers highlighted that USDe’s overcollateralization was the key factor behind its quick recovery after briefly dipping below $1 during the recent market crash.
Whale accumulation strengthens price outlook
Investor confidence also grew after Ethena Labs announced a partnership with Conduit, a platform powering over 55% of Ethereum-based chains. The collaboration allows developers using Conduit to integrate Ethena’s stablecoin infrastructure directly into their ecosystems.
On-chain data supports a bullish outlook, showing continued accumulation by whales. Large holders now control 46.6 million ENA tokens, up from 41.6 million on October 1, according to Nansen.
Notably, well-known crypto figures Arthur Hayes and Kain Warwick collectively hold 66.9 million ENA, marking a 600% increase compared to last month.
The number of ENA tokens held on exchanges has fallen to 4.58 billion, down from 4.94 billion on October 7 — a signal that investors are moving assets to self-custody wallets rather than preparing to sell.
Ethena price technical analysis
Technical analysis paints a cautiously optimistic picture for ENA. The token previously formed a double-top at $0.8538 in August and September before collapsing below the neckline support at $0.6060. It later bottomed out at $0.1475 and has since rebounded to just under $0.50.
If bullish momentum continues, ENA could rally toward $0.6060, representing a potential 30% upside from current levels.
However, the main risk lies in the formation of a death cross — a bearish signal that occurs when the 50-day and 200-day exponential moving averages (EMAs) intersect. Should this pattern emerge, ENA could re-enter a downtrend and retest the yearly low near $0.1475.
What is Ethena?
Ethena is a relatively new decentralized finance (DeFi) project that aims to achieve price stability without traditional collateral or centralized backing. Its algorithmic model adjusts token supply dynamically in response to demand, distinguishing it from fiat-backed stablecoins like USDT or USDC.
Developed by Ethena Labs, the protocol’s goal is to create a trust-minimized, decentralized stablecoin ecosystem that maintains value stability through market mechanisms rather than direct asset collateralization.
