News
Ethena (ENA) Price Prediction as Crypto Fear and Greed Index Slides
Ethena price experienced a sharp freefall this week as a sense of fear spread across the cryptocurrency sector.
ENA has posted losses for eight consecutive days, marking its longest losing streak on record. It fell to a low of $0.07400 on Tuesday, reaching its lowest point since May 20. This year it has lost more than half of its value from its highest level.
Cryptocurrency Fear and Greed Index Slips
Ethena joined other cryptocurrencies that have fallen sharply in recent days. Bitcoin, the world’s largest cryptocurrency, fell from this month’s high of nearly $72,000 to $67,000. Ethereum also fell to $3,500, while the market capitalization of all digital coins fell to $2.4 trillion.
This pullback contributed to a decline in the cryptocurrency fear and greed index, which fell from this week’s high of 64 to the greed zone of 60.
There has been no direct catalyst for this sell-off as Bitcoin ETFs have continued to accumulate assets in recent weeks. Therefore, investors likely expect an aggressive stance from the Federal Reserve when it concludes its meeting on Wednesday.
Ethena’s price has fallen even as its ecosystem remains stable. Second DeFi Bladethe total value locked in the ecosystem rose to a record high of over $3.38 billion thanks to the surge in demand for the Ethena USDe stablecoin.
USDe has now grown to become the fourth largest stablecoin in the industry Bind, USD and Dai coins. Its holders have jumped to over 212,000 as they chase its 27.5% yield. This is a higher yield than Terra Luna offered at its peak.
There are some concerns regarding the USDe. First, US legislation proposed by Cynthia Lummis would ban algorithmic stablecoins in the country. Secondly, there is a risk that the stablecoin will lose its peg in the event of substantial volatility in the cryptocurrency sector.
Third, unlike stablecoins like Tether and USDC, USDe is not backed by fiat currency. Instead, the developers have described the mechanism as a “delta-neutral synthetic dollar supported by assets outside the banking system.” It achieves stability by hedging the delta of spot assets during the minting process.
Ethena price forecast
Ethena’s hourly chart
The 4H chart shows that Ethena’s Token the price has been in a strong downtrend after peaking at $1.0800 last week. It has now slipped below the 50-period moving average while the MACD indicator has fallen below the neutral level.
The Relative Strength Index (RSI) has also moved from the overbought level of 75 to the current 30. Therefore, the path of least resistance for the token is bearish, with the next point to watch at $0.6550, his lowest swing of March. 16.