Ethena (ENA) has just announced the establishment of the StableCoinX Inc fund management company with plans to purchase 5 million USD of ENA each day for the next 6 weeks, pushing the price above the psychological resistance level of 0.5 USD.
This information opens up strong growth prospects for ENA as StableCoinX commits to maintaining long-term accumulation, while the plan to list shares on Nasdaq adds transparency and credibility to the project.
MAIN CONTENT
Ethena raised 360 million USD to purchase 8% of the total ENA supply, managed by the newly established StableCoinX company.
ENA price surpasses the 0.5 USD barrier thanks to strong cash flow and stable market demand.
Many technical indicators confirm a sustainable upward price trend in the short and medium term.
What has Ethena announced about the StableCoinX fund and its impact?
According to information from Ethena Labs, StableCoinX Inc was established to manage a 360 million USD investment in ENA, equivalent to 8% of the total circulating supply. The ENA buying plan occurs regularly with a value of 5 million USD each day over the course of 6 weeks, creating strong demand pressure in the market.
Notably, the Ethena Foundation holds veto power over any ENA sales by StableCoinX, prioritizing accumulation rather than mass selling. This reinforces a sustainable growth strategy and increases investor confidence.
"The Ethena Foundation has the right to veto the sale of ENA by StableCoinX to ensure long-term accumulation goals and market control."
Ethena Labs, official announcement July 2024
What does it mean for the ENA price to surpass the 0.5 USD resistance?
The ENA price surpassing the psychological resistance level of 0.5 USD marks a significant turning point. Indicators such as A/D and CMF both show positive inflow of funds, with trading volume consistently above the 20-day average, demonstrating strong buying power.
The Awesome Oscillator also confirms a solid upward momentum in the 1-day timeframe, shifting the price trend from a prolonged accumulation phase since April to a new upward trend.
"The breakthrough beyond the 0.5 USD level indicates that ENA has exited the accumulation phase, opening up the possibility of stable price increases in the coming month."
Cryptocurrency market analyst TinTucBitcoin, July 15, 2024
What is the potential adjustment price level of ENA after the current increase?
The Coinglass liquidation heatmap analysis indicates the potential for ENA's price to slightly adjust to the 0.45 – 0.47 USD range. This is an important support level derived from the rebound area in February, creating favorable opportunities for investors to continue buying.
However, Bitcoin price volatility may affect overall market sentiment, causing ENA to also fluctuate in line with general cryptocurrency market trends.
How will StableCoinX's long-term accumulation strategy affect ENA?
StableCoinX applies a multi-year capital allocation strategy to maintain steady and stable buying power. According to the CEO of Ethena Labs, this not only maintains liquidity but also helps control price volatility, increasing project stability.
Criteria Before StableCoinX After StableCoinX's participation Average ENA Price Stable around 0.25 – 0.5 USD Exceeds 0.5 USD, clear upward trend Liquidity Average trading volume Strong increase, surpassing the 20-day average Investment strategy Not focused on large accumulation purchases Regular purchases of 5 million USD/day for 6 weeks
Frequently Asked Questions
How does Ethena Labs plan to develop StableCoinX?
StableCoinX focuses on long-term capital allocation, regularly accumulating ENA and has veto power over sales to ensure stable prices and sustainable growth.
Is the current ENA price sustainable?
The technical indicators and StableCoinX's continuous buying strategy provide a basis for sustainable ENA price growth, although there may be slight adjustments.
How does Bitcoin price volatility affect ENA?
Bitcoin is the dominant currency, and fluctuations in BTC usually lead to price volatility in altcoins, including ENA.
Does Ethena have any plans besides accumulating ENA?
According to the announcement, Ethena also plans to list shares on Nasdaq to increase transparency and attract capital from institutional investors.
Can StableCoinX sell ENA at any time?
The Ethena Foundation holds veto power over any selling actions by StableCoinX to prioritize long-term accumulation, protecting the project's value.
Source: https://tintucbitcoin.com/ethena-ena-tang-nho-stablecoinx-mua/
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