Ethena token stabilized after falling sharply in recent days following Spark’s announcement of stablecoin integration.
Ethena (ENA) rose to $0.83 on Jan. 14, recovering from this week’s low of $0.7255. Despite the rebound, the token remains 35% below its highest level this year and has formed a risky chart pattern that suggests a potential further retreat.
Spark, the 13th-largest player in the decentralized finance, industry by assets, announced it would integrate Ethena’s USDe (USDE) and sUSDe stablecoins into the Spark Liquidity Layer. As part of the integration, Spark Liquidity Layer will allocate stablecoins to Ethena, with plans to increase the allocation to $1.1 billion.
“We see USDe as an incredibly powerful primitive for the best DeFi applications and builders today. Ethena’s integration with Spark Liquidity Layer represents a major move towards enhancing the accessibility of USDe and sUSDe, allowing more users to benefit from crypto-native assets.”
Ethena has emerged as one of the biggest players in the crypto sector. Its USDe stablecoin currently has a market cap of over $5.79 billion, making it the fourth-largest in the space. Unlike Tether and USDC, USDe offers holders a monthly yield, which is currently at 11%. Ethena’s staked version, sUSDe, has over $4.1 billion in assets.
Spark is also a prominent player in the industry, allowing users to save and borrow stablecoins. Its USDS stablecoin has a market cap of $6.13 billion, making it the third-largest in the sector.
Ethena price technical analysis
The daily chart shows that ENA has been in a strong downward trend over the past few weeks, dropping from a high of $1.3085 earlier this year to the current $0.8345.
The token has fallen below the 50-day and 25-day exponential moving averages, signaling that bears remain in control.
Most notably, Ethena has formed a double-top chart pattern at $1.3085, with the neckline at $0.8455. A double-top is a widely recognized bearish indicator.
Given this pattern, ENA is likely to continue declining as sellers target the next psychological level at $0.50 — about 40% below the current price. However, a move above the key resistance level at $1 would invalidate the bearish outlook.
