Unbelievable! Ethena’s Wild Ride After Fed Rate Cuts Will Leave You Speechless! 😲

by

Key Takeaways

Oh, what a spectacle! ENA liquidity has surged like a runaway horse, hitting a staggering $12.049 billion! Open Interest has spiked to 19.74%, and the whispers of Fed rate cuts have sent bullish momentum soaring. But can ENA gallop its way to $0.85? Only time will tell! 🐴💰

In the past 24 hours, Ethena’s [ENA] price action has been nothing short of a theatrical performance, with liquidity across both on-chain and off-chain markets bursting forth like a well-timed punchline in a comedy. 🎭

But hold your horses! The next act hinges on the U.S. Federal Reserve’s decision regarding interest rates. An analysis by AMBCrypto has taken a magnifying glass to the potential price moves for ENA and the myriad factors influencing this grand spectacle.

Liquidity inflow rises fast

Liquidity inflows into ENA have been so high this week that one might think they were trying to fill a bottomless pit! 📈

According to the oracle known as DeFiLlama, on-chain data reveals that TVL has surged by over $100 million in just 24 hours, reaching a jaw-dropping $12.025 billion-an all-time high that would make even the most stoic investor chuckle with glee! 😂

This surge in TVL suggests that more investors are adding liquidity for a long-term outlook-earning returns while positioning for ENA’s price increase, creating a delightful double-gain effect. It’s like finding a hidden stash of rubles in your winter coat! 🧥💵

In the derivatives market, the bullish sentiment was as clear as a babushka’s advice on a cold winter’s night. Data from CoinGlass revealed over $300 million in new contracts added, following a 19.74% surge in Open Interest, which has now risen above $1.5 billion at press time. Quite the spectacle, wouldn’t you say? 🎩

While this alone does not confirm a bullish trend, the simultaneous spike in derivatives trading volume and persistently positive Funding Rates suggest inflows were dominated by bullish traders, much like a crowd at a carnival drawn to the smell of fresh blinis! 🎡

Could a Fed rate cut spark ENA’s gains?

Ethena Labs’ co-founder, in a moment of profound insight on X (formerly Twitter), proclaimed that falling interest rates could trigger another major move for ENA:

“I think Ethena is the most levered asset on earth to falling interest rates.”

His comment, akin to a sage’s prophecy, referenced Ethena’s stablecoin USDe, which doubled its supply after the U.S. rate cuts entering Q4 2024. He suggested a similar outcome could play out now, like a well-rehearsed play! 🎭

AMBCrypto’s review of ENA’s Q4 2024 performance revealed a staggering 419% price increase during that period. A similar rate-driven setup could replicate those gains as Q4 2025 approaches, like a magician pulling a rabbit out of a hat! 🎩🐇

Price outlook for ENA

In the short term, ENA’s outlook remains as bright as a freshly polished samovar, as the price broke out of a descending wedge, reclaiming higher levels. ☕

Analysis indicated ENA has broken out of a bullish descending pattern and could reach a new high in the coming days, with a price target of $0.85. Will it soar like a kite on a windy day? Only the market knows! 🪁

Technical indicators reinforced this bias, much like a well-timed punchline in a comedy routine.

The Money Flow Index (MFI) printed 71.54, signaling strong capital inflows, while the Average Directional Index (ADX) at 38.41 highlighted powerful upward momentum. It’s a veritable feast of financial indicators! 🍽️

Read More

2025-08-24 01:18