On Monday, Ethena was the biggest gainer among major cryptocurrencies, rising above its $0.60 support level.
The TVL of Ethena goes up to $9.53 billion, showing that holders believe in the ecosystem.
Ethena's USDe stablecoin is now the third-largest stablecoin by market cap, ahead of FSUSD.
On Monday, Ethena (ENA) saw one of the largest price increases of all the main cryptocurrencies. This was due to a robust Decentralized Finance (DeFi) ecosystem and consistent retail demand. After falling below $0.51 support on Saturday, ENA rose 24% to $0.63 before falling back to roughly $0.61 at the time of writing.
If the price stays above the short-term support level of $0.60 every day, it will confirm the bullish hold and make it more likely that Ethena will hit important resistance levels at $0.70, $0.75, and $1.00.
Ethena shows off a bullish DeFi ecosystem
Over the last several months, Ethena's DeFi ecosystem has stabilized its development, with its Total Value Locked (TVL) reaching a high of almost $9.54 billion, up from $4.72 billion on May 4.
TVL is the total value of all the coins that are locked up in all the smart contracts on the system. When people want to retain their tokens for a long time, they generally choose to lock them in smart contracts.
Staking lets investors help protect the network and get profits at the same time. The constant growth in TVL shows that investors have a lot of faith in the ecosystem. At the same time, it lowers ENA's selling pressure and circulating supply, which makes it more likely that the price will go up.
According to DefiLlama statistics, Ethena's USDe stablecoin has also grown a lot this year, with a market value of $9.23 billion. In the previous 30 days, USDe grew the most, by more than 75%. It is now the third-largest stablecoin behind Tether's USDT.
More and more people are interested in investing in Ethena. CoinGlass data shows that the futures Open Interest (OI) is back above $1 billion after falling to $916 million on Sunday.
In July, OI, which is the notional value of all futures or options contracts, reached its highest point at $1.35 billion. This was because more and more traders were betting that the price of Ethena would go up.
The price of Ethena is above support around $0.60 right now, thanks to a strong DeFi ecosystem and growing interest from retail investors. The coin is also above important moving averages, including as the 50-day Exponential Moving Average (EMA), which is now at $0.57, the 100-period EMA, which is at $0.53, and the 200-period EMA, which is at $0.46. If the slide from last week continues, these levels would act as provisional support to keep ENA from falling to $0.40.
Traders should keep an eye on the RSI to see if it keeps going down near the midline. This might suggest that purchasing pressure is going down. If the RSI, on the other hand, starts to rise again into overbought area, the path of least resistance would still be up, which would make it more likely that ENA would keep going up to the $0.70 and $0.75 levels, respectively.
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