ENA's Uptrend Faces Resistance in Supply Zone
Ethena (ENA), a DeFi protocol that issues synthetic stablecoins, has seen significant growth in recent weeks. After forming a higher low of $0.135 on September 14th, ENA rallied by 71.14% to reach a local high of $0.231 on Sunday, September 20th.
Despite Bitcoin's (BTC) breakout above key resistance levels on Monday, ENA remained relatively quiet, oscillating around the $0.215-level.
The growth in stablecoin market cap has contributed to ENA's uptrend. The protocol issues the synthetic stablecoin USDe, and since its inception, ENA has seen a significant increase in spot demand, with nearly $1.26 billion locked up to earn yield.
However, the $0.22-$0.26 area is now acting as a supply zone for ENA, trapping late buyers who entered during January's rally.