TLDR:
- ENA trades at $0.130, representing a 67% discount compared to the $0.40 private sale price paid by VCs.
- Ethena’s USDe stablecoin reached $5.8 billion market cap, becoming the third-largest stablecoin globally.
- Analyst CryptoPatel projects targets of $0.50, $1.26, and bonus $3+ if support zones between $0.06-$0.08 hold.
- Protocol faces risks from heavy token unlocks through 2028 and reliance on positive perpetual funding rates.
Ethena’s native token ENA trades at $0.130 as of writing, marking a 93% decline from its all-time high and presenting retail investors with a rare opportunity to enter below venture capital pricing.
Crypto analyst CryptoPatel highlights that private sale participants paid $0.40 per token, while current prices sit 67% below that level.
The token trades within a long-term descending channel since 2024, testing critical support levels near its established accumulation zone.
Technical Structure Points to Potential Reversal Zone
ENA has completed a multi-leg correction pattern and now sits at the lower boundary of its descending channel. The analyst identifies a strong accumulation zone between $0.08 and $0.06, with current prices hovering just above this range. A head and shoulders pattern suggests a bearish long-term accumulation target at $0.07 for patient investors.
The token maintains structural support despite severe drawdown from peak levels. CryptoPatel sets price targets at $0.50, $1.26, and a bonus level above $3.00 for traders.
These projections depend on ENA holding above the defined accumulation zone in the coming sessions. Chart patterns indicate that demand has begun emerging at channel support levels.
Volume analysis shows increased activity near current price ranges compared to recent months. The technical setup presents what analysts consider a high-risk, high-reward opportunity.
However, traders need strict risk management given the elevated volatility and historical price action. Market participants should monitor the channel support closely for signs of either breakdown or reversal.
Trump’s World Liberty Financial added notable exposure by purchasing approximately $5.15 million worth of ENA tokens.
The investment occurred at prices between $0.90 and $0.98, resulting in an unrealized loss exceeding $4.50 million at current valuations.
This institutional entry demonstrates confidence despite near-term price weakness and ongoing market challenges.
Fundamental Catalysts Support Long-Term Bull Case
Ethena’s USDe stablecoin has reached $5.8 billion in market capitalization, becoming the third-largest stablecoin in cryptocurrency markets.
This growth metric provides underlying value support for the ENA token ecosystem. The protocol plans to implement a fee switch mechanism in Q1 2026, which will direct protocol revenue to token stakers.
Development roadmaps include launching a proprietary blockchain infrastructure and rolling out an institutional product called iUSDe.
These initiatives aim to expand the protocol’s addressable market beyond retail participants. Major traditional finance players have backed the project, lending credibility to its long-term viability and adoption potential.
Nevertheless, investors face considerable risks that warrant careful evaluation before entering positions. Heavy token unlocks continue through 2028, potentially creating sustained selling pressure.
The protocol’s economic model draws comparisons to Terra/Luna, raising questions about sustainability. Additionally, the system depends heavily on positive funding rates in perpetual futures markets to generate yield.
Market observers note that the current setup invalidates if support zones break down. Participants should size positions appropriately given the binary nature of the technical and fundamental outlook.
The post ENA Token Down 93% From Peak as Analyst Eyes $3 Target Despite Heavy Drawdown appeared first on Blockonomi.
Source: https://blockonomi.com/ena-token-down-93-from-peak-as-analyst-eyes-3-target-despite-heavy-drawdown/
