Posted: December 16, 2024

• Trump-backed World Liberty Financials was bullish on ENA. 
• Should you follow and jump on ENA too? 

The Donald Trump-backed DeFi project, World Liberty Financials (WLF), has added Ethena [ENA] to its portfolio. According to blockchain analytics firm, SpotOnChain, the project bought $500K ENA. 

WLF recently scooped top DeFi tokens including Ethereum [ETH], Aave [AAVE], and Chainlink [LINK]. In fact, AAVE and LINK pumped nearly 30% each after the bids. 

ENA also pumped after the WLF move and posted over 13% gains. But what’s ENA’s valuation status, and can short-term players jump on the trend?

ENA’s upside potential 

As of this writing, short and mid-term ENA holders had massive triple-digit unrealized profits. This was illustrated by the 186% for 180-day MVRV and 175% gains for 90-day MVRV gains. 

This meant that those who have held ENA for the past six or three months had huge unrealized gains and could book profit. So, per MVRV, ENA was relatively overvalued. 

However, another crypto investor, Byzantine General, argued that ENA could still have massive upside potential, citing its outperforming stablecoin yield, USDe. He said, 

“ENA with its stablecoin that gains yield from positive funding rates (and staking) should perform really well as long as we’re in a bull market. I think this just keeps grinding up.” 

With ENA’s value at $1, only 5% of total ENA holders were at a loss, per IntoTheBlock data. This could quickly turn late buyers into exit liquidity, making it relatively expensive to jump into the altcoin for investors. 

However, should they continue to hold, then the immediate roadblock was at $1.22-$1.25, as over 850K ENA (red bubble) were bought at this level. 

However, traders could still have potential opportunities. On the price charts, ENA faced rejection at $1.2 but defended the $1.12 and mid-range level.

This could set the stage for targeting the upper level of $1.23. If so, a 15% potential gain could be feasible. 

On the contrary, a breach below the mid-range could drag ENA to range-low or 50-day EMA (Moving Average) on the 4-hour chart.