Key highlights:
- The ENA price is currently breaking out of a descending wedge pattern amid defense of the 4-hours’ 100 period moving average
- Ethena staked $50 million worth of assets within the Morpho yield vault, raising its value to $106 million
- Active addresses fell from 1,000 to 700, while daily transactions dropped from 3,400 to 2,200
The ENA price is starting to look more constructive after spending months under heavy selling pressure. Ethena has committed about $50 million to a Morpho yield vault, strengthening its position in DeFi just as the charts begin hinting at a possible breakout.
Crypto analyst Captain Faibik believes ENA is close to breaking out of a falling wedge pattern that has been developing for months. In his view, patience could pay off if buyers manage to push through resistance and confirm a breakout.
The technical picture is still split, though. While the short term has seen positive momentum, the overall daily trend still faces pressure. On the other hand, on-chain metrics keep going down since active addresses and transactions keep falling.
The ENA price is testing a key breakout level
Captain Faibik's chart focuses on a falling wedge that has contained the ENA price since its 2025 highs. After months of lower highs and lower lows, the token is now trading near the upper boundary of that pattern.
$ENA is on the Verge of Falling Wedge Breakout..!!
Hold with the Patience, You will thank me later..#Crypto #ENA #ENAUSDT pic.twitter.com/Lhq8jmYgam— Captain Faibik 🐺 (@CryptoFaibik) July 12, 2026
One area stands out on the chart. A green accumulation zone near the bottom of the channel has repeatedly attracted buyers, preventing another leg lower despite the prolonged decline. That support has become one of the most important levels to watch.
If buyers can finally push above the wedge's upper trendline, the next upside targets come into the $0.12 to $0.15 range. Until then, the breakout remains unconfirmed, and losing support near the lower boundary could send the ENA price to fresh lows.
The Ethena charts are beginning to improve
We had a look at both the daily and lower-timeframe ENA charts, and the short-term setup has become more encouraging.
4-hour ENA chart analysis
The ENA price is currently trading at $0.0834 on the 4-hour chart, which is about 7.5% above the 100-period simple moving average (SMA) price of $0.0776. The SMA is now flat after falling consistently for months, implying that selling pressure is waning.
The buyers are gaining momentum too. The 4-hour RSI is now at 64.11, which is above the neutral 50 level without indicating any overboughtness. The nearest resistance levels are at $0.0844, $0.0900, $0.1000, and finally $0.1100 if the buyers remain in control.
Daily ENA chart analysis
More work needs to be done on the daily chart before the larger trend changes. The ENA price is about 13% below the 100-day SMA at $0.0959, making the larger trend bearish. However, the daily RSI has rebounded to 53.14 from the oversold territory after spending some time there early this year.
Ethena on-chain activity remains soft
In contrast, on-chain data from Glassnode indicate a drop. On Ethena, daily active addresses dropped from approximately 1,000 to 700, which corresponds to a 30% decline.
Daily transactions fell from approximately 3,400 to 2,200, which marks a 35% drop. Moreover, the ENA price decreased slightly to $0.080 from $0.081 for the period under consideration. Thus, the aforementioned indicators reflect a reduction in activity together with a drop in price.
However, the amount of data is limited to a relatively short period of time. Therefore, the observed trends cannot be taken as a long-term one. Nevertheless, traders should pay attention to how active addresses and transaction volumes will evolve further.
Ethena is expanding its DeFi footprint
Away from the charts, Ethena has made one of its biggest DeFi allocations by depositing about $50 million into a Morpho yield vault.
That single transaction lifted the vault's total value locked from around $41 million to more than $106 million, an increase of roughly 159% in one day. The move immediately turned the vault into one of the largest pools within Morpho's ecosystem.
Morpho's vaults automatically allocate capital across selected lending markets, allowing users to earn yield from overcollateralized borrowers. By providing $50 million in liquidity, Ethena has helped create a deeper lending pool that can support larger borrowing activity and improve capital efficiency.
The move also strengthens Ethena's position in the on-chain yield market. Over the coming weeks, investors will be watching the vault's performance, including borrowing demand, realized yields, collateral quality, and whether other large DeFi participants make similar allocations.
Like any DeFi protocol, the vault also carries risks. Smart contracts, collateral management, oracle systems, and liquidation mechanisms will all play a role in determining how the strategy performs over time.
What comes next for the ENA price?
The ENA price has started to recover, but buyers still have important resistance levels to clear. The first resistance level is seen at $0.0844. A break above this price level would open up resistance at $0.0900, followed by the 100-day moving average on a daily chart at $0.0959.
The prices to look out for in case of buyers gaining control are $0.1000 and $0.1100. Resistance is seen at $0.0782, followed by $0.0776, which is the 4-hour moving average. Ethena's $50 million investment into Morpho gives the project a stronger position in decentralized lending, but network activity still has room to improve.
If user activity begins recovering alongside the improving technical picture, it would provide stronger support for the ENA price. CoinCodex's 1-month ENA price prediction places the price at $0.06005, implying potential downside from current levels if the ENA price fails to break above the $0.0900 resistance and reclaim the 100-day moving average near $0.0959.
