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The Ethena price plummeted over 8% in the last 24 hours to trade at $0.9421 as of 2:25 a.m. EST as investors cash out some of their profits from the crypto’s latest rally.
Amid the drop in ENA’s price, Ethena Labs has added Bitcoin as collateral for USDe in response to concerns relating to its volatile APY. After going live on Ethereum on Feb. 19, Ethena promised 27.6% APY for staked USDe. The APY then surged to 113% on Mar. 5 before falling back to 7.15%.
Excited to announce that Ethena has onboarded BTC as a backing asset to USDe
This is a crucial unlock which will enable USDe to scale significantly from the current $2bn supply pic.twitter.com/FOZRWBrVZV
— Ethena Labs (@ethena_labs) April 4, 2024
The Ethena Price At Risk Of Losing Another Support
1-hour chart for ENA/USDT (Source: TradingView)
The Ethena price has printed a couple of lower highs on its 1-hour chart in the past day of trading, resulting in the formation of a negative trend line. A descending triangle has also emerged on the crypto’s hourly chart, with the base of the triangle at the $0.895 support level. This is a bearish chart pattern, which is usually seen as a precursor to a correction.
Should the Ethena price drop below the $0.895 support in the coming 6-12 hours, it could be at risk of falling to the next key support level at $0.726. However, a 1-hour candle close above the hypotenuse of the descending triangle could invalidate the bearish thesis.
In this alternative scenario, traders might look to push ENA higher and attempt to flip the major resistance level at $1.201 into support. Establishing a position above this barrier could then give the Ethena price the foundation needed to rise to a new all-time high in the following few days.
Bulls And Bears Battle It Out To Try And Take Control Over The Ethena Price
Technical indicators on ENA’s hourly chart are sending mixed signals. On one hand, ENA’s bearish momentum seems to be slowing down. This is evident by the Moving Average Convergence Divergence (MACD) Histogram approaching the zero mark.
Meanwhile, the Relative Strength Index (RSI) shows that sellers are growing stronger against buyers, with the RSI breaking away below its Simple Moving Average (SMA) line. This is after the former was rejected by the latter in the past few hours.
While market newcomer Ethena tries to find its footing, meme coin Sponge V2 is looking to repeat the remarkable growth it achieved in the 2023 bear market.
This Meme Coin Could 100X Again
Sponge took the crypto world by storm in 2023 after it managed to soar 100X during a time when the rest of the market was stuck in a crypto winter. Shortly after its debut, the meme coin’s value skyrocketed, pushing the crypto’s market cap to a peak of $100 million.
Sponge’s meteoric rise happened so quickly that many investors missed out on the opportunity to profit from the substantial gains that the crypto printed last year.
This is why the team behind the viral meme coin have decided to give investors a second chance to get in early before another price explosion with the launch of Sponge V2.
To increase its chances of success, the Sponge team will be introducing several upgrades to the meme coin’s ecosystem. These upgrades include a P2E racer game, a lucrative staking program, as well as listings on a number of major exchanges.
The Sponge token (SPONGE) has also been migrated to the highly-scalable and cost-efficient Polygon blockchain.
Sponge V2 Will Be More Than Just A Meme Coin
Sponge’s success in 2023 was mainly driven by the hype surrounding meme coins. However, this alone is not sustainable. Driven by this realization, the meme coin’s team have decided to create a play-to-earn racer game, which will come in both a paid version and a free version.
Don't forget, #SPONGERS! 🧽💦#SpongeV2 is bringing exciting utility through our upcoming #P2E game! 🔥
Get ready to earn $SPONGE tokens by playing the game and ranking on the leaderboard.
Stay tuned for more info! 🚀#MemeCoin #Crypto #Alts #100x pic.twitter.com/5aaLxGz8N1
— $SPONGE (@spongeoneth) March 22, 2024
Players will use the SPONGE token as credit in the paid version, while also standing the chance of earning rewards that are paid out in the meme coin. Not only does it allow the crypto to expand into the booming blockchain gaming sector, it also brings a degree of utility that many meme coins lack – separating SPONGE from the rest of the meme coin pack.
A lucrative staking mechanism also has been introduced that enables holders to stake tokens for 168% in annual rewards on Ethereum and 369% on Polygon.
Given the list of updates that will be making their way to the SPONGE ecosystem, the meme coin’s price could skyrocket 100X again in the coming months.
Investors that want to purchase Sponge V2 can do so on the project’s website using either ETH, USDT, MATIC or a bank card.
Purchase Sponge V2 on the project’s official website here.
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