Ethena gains more than 10% after governance backs token buyback tied to protocol revenue

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Ethena surges 10.04% today on buybacks

Highlights

Ethena governance approved using 95% of net protocol revenue for ENA token buybacks after reaching $7.5 billion USDe supply.
Ethena Foundation has repurchased early investor tokens, updated vesting schedules, and an unlock of about 140 million ENA is set for October 5.
ENA/USD trades with strong bullish momentum across timeframes, with price expected in a $0.2253 to $0.342 range and high probability of an upward move.

Buyback-driven value alignment as governance and protocol reforms converge

Standard Chartered has initiated research coverage on Ethena, spotlighting the USDe synthetic dollar protocol and anticipating significant token growth following the activation of a buyback program that will use 95% of net protocol revenue to repurchase ENA, especially after reaching a $7.5 billion USDe supply. Ethena's governance approved this buyback, aligning token value with protocol revenue and expansion into tokenized assets and stablecoin markets. The Ethena Foundation has also bought back early investor tokens and updated vesting schedules, with an upcoming unlock of about 140 million ENA, set for October 5. The SEC has commented on buyback compliance, which fits with Ethena’s decentralized on-chain treasury framework.

Anton Kharitonov, expert at Traders Union, notes that ENA's price growth is largely driven by speculative enthusiasm around the buyback and positive coverage from Standard Chartered. He cautions that the upcoming 140 million ENA unlock and unresolved regulatory issues may create headwinds. Technically, the rally is stretched as momentum indicators near overbought. Kharitonov questions the sustainability of demand at these levels amid significant intraday volatility. "With this much froth and upcoming unlocks, late buyers may quickly face losses if sentiment turns."

Viktoras Karapetjanc, expert at Traders Union, sees the Standard Chartered coverage and governance-approved token buyback as major catalysts for bullish momentum. He highlights the protocol’s commitment to using 95% of revenue for ENA repurchases, which strongly aligns community and investor interests. The current robust trading above long-term averages indicates the bullish structure remains intact, with further growth expected if resistance at $0.2813 is cleared. "This market offers multiple setups for further upside — I expect buyers to stay firmly in control as long as these fundamentals hold."

Jainam Mehta, market strategist, believes ENA's technical positioning supports near-term consolidation or a breakout scenario. He notes that momentum readings remain constructive, but the RSI nearing 70 warrants capital protection. Mehta sees a tactical opportunity for momentum trades above $0.2813, with stops below $0.2253 for risk management. "Potential breakout above resistance could attract trend-followers — but I would monitor for any false upward moves near overbought levels."

Momentum signals and moving average support confirm persistent bullish bias

ENA/USD continues to trade firmly above its 20-day, 50-day, and 200-day moving averages—currently $0.1958, $0.1593, and $0.1105, respectively—signaling strength across short-, medium-, and long-term trends. The current move is further confirmed by the bullish alignment between the MA-50 and MA-200, with the nearest support at $0.2439 and resistance at $0.2813. Momentum readings paint a constructive picture. The Moving Average Convergence Divergence (MACD) and Average Directional Index (ADX) both generate clear buy signals, reflecting continued bullish momentum. The Relative Strength Index (RSI) is at 68.84, approaching but not yet breaching classic overbought territory, while Commodity Channel Index (CCI) at 87.26 remains supportive of the uptrend. Stochastic RSI sits neutral at 59.44. Bull/Bear Power (BBP) at 0.0326 signals that buyers dominate intraday, and this is confirmed by the Awesome Oscillator's supportive trend signal. ENA/USD is up $0.0249 or 10.04% so far, having gapped higher on the open by about 0.08%, currently trading near the day’s high amid robust intraday volatility of 15.33%. Price action reflects determined buying with strength toward session highs, in line with prevailing momentum indicators.

Earlier, analysts noted that Ethena’s protocol enhancements and aggressive buyback mechanisms positioned ENA for potential breakout opportunities, with volatility expected around the upcoming token unlock. The current technical outlook expands on that view, as bullish momentum persists and the trading range widens, with key levels at $0.2253 and $0.342 presenting actionable zones for risk management in the days ahead.

Source of Data: ENA Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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