Ethena: Evaluating ENA’s Future After World Liberty Financials’ $500K Proposal
World Liberty Financials (WLF), a decentralized finance project supported by former President Donald Trump, has recently acquired Ethena [ENA] as part of its investment portfolio. According to insights from SpotOnChain, WLF has purchased $500K worth of ENA tokens.
WLF has recently acquired prominent DeFi tokens such as Ethereum [ETH], Aave [AAVE], and Chainlink [LINK], resulting in significant price surges of nearly 30% for AAVE and LINK following the acquisitions.
Following WLF’s investment in ENA, the token also experienced a notable increase with gains exceeding 13%. This raises questions about the current valuation of ENA and whether short-term investors can capitalize on this trend.
Predicting ENA’s Growth Potential
At present, investors who have held ENA in the short and medium term have seen substantial profits in the triple digits. This is evidenced by a 180-day MVRV of 186% and a 90-day MVRV gain of 175%.
Despite the impressive gains, ENA appears to be relatively overvalued based on MVRV metrics, indicating that some investors may consider taking profits given the current market conditions.
Conversely, a crypto investor named Byzantine General remains optimistic about ENA’s future potential, pointing out the token’s stablecoin yield from positive funding rates and staking as factors that could drive further growth.
“ENA, with its stablecoin that earns yield from positive funding rates (and staking), could perform strongly in a bullish market environment. I believe it has the potential to continue its upward trajectory.”
According to data from IntoTheBlock, only 5% of total ENA holders are currently experiencing losses, potentially creating a scenario where late buyers could trigger increased selling pressure, making it costly for new investors to enter the altcoin market.
Despite potential challenges, traders still have opportunities to capitalize on ENA’s price movements. While the token faced resistance at $1.2, it found support at $1.12, suggesting a possible target of $1.23 with a 15% gain opportunity.
Conversely, a breach below the mid-range support level could lead ENA to test lower price levels or the 50-day EMA on the 4-hour chart.