Athena Protocol Gains Momentum with TVL Increase to $2.75 Billion, Ready for $1?
Highlights
- The formation of falling wedge pattern maturity of prior correction trend and potential for a renewed recovery force.
- The rising ENA price could face a strong overhead supply at $1.18 resistance.
- The intraday trading volume in Ethena is $310.2 Million, indicating a 16% gain.
On Monday, the cryptocurrency market witnessed a notable uptick as the leading digital asset Bitcoin surged above the $70000 psychological level. The number two crypto Ethereum also showed similar momentum as a 3% jump almost pushed it above the $4000 mark. Therefore, several altcoins including Athena experience a renewed market recovery aiming to prolong the recovery trend.
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Athena Protocol’s TVL Soars 20%, Signaling Renewed User Confidence
Amid the broader market recovery, the Athena coin entered a new recovery phase around mid-May as its price rebounded from $0.653. The positive turnaround uplifted the altcoin to 43.5% to currently trade at $0.937, while its market cap boasted $1.42 Billion.
An analysis of the daily chart shows this recovery breached the resistance trendline of a falling wedge pattern, escaping a six-week correction.
According to a recent tweet from the crypto analytics firm IntoTheBlock, the Total Value Locked (TVL) in the Ethena protocol has seen a significant increase, going parabolic once again. After experiencing a slow month, Ethena’s TVL has surged to $2.75 billion, marking an impressive rise of nearly 20% over the past two weeks.
After a slow month, Ethena TVL is going parabolic again.
TVL is currently at $2.75B, an increase of nearly 20% in the last two weeks pic.twitter.com/yivqkuenYB
— IntoTheBlock (@intotheblock) May 27, 2024
This growth in TVL indicates a renewed interest and confidence in the Ethena protocol, suggesting that more users are locking their assets within the platform. The spike in TVL is a positive indicator of the platform’s health and popularity, reflecting increased user engagement and potential for further growth.
If the aforementioned bullish pattern holds true, the current recovery in ENA price could rise to $1.18, followed by $1.52.
Technical Indicator
- Exponential Moving Average: The ENA price jump above the 20- and 50-day EMA indicates the buyers are strengthening their grip over this asset.
- Average Directional Index: The ADX slope rising at 14% hints the recovery trend is far from exhaustion meaning an Athena could ride a prolonged rally.
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