The Ethena token has stabilized after falling sharply in recent days following Spark's announcement of stablecoin integration.

Athens (this) to $0.83 on January 14, rebounding from this week's low of $0.7255. Despite the recovery, the token is still 35% below its high this year and has formed a risky chart pattern indicating a potential further pullback.

Spark, the No. 13 DeFi company by industry by assets, announced that it will integrate Ethena's USDe (US dollars) and sUSDe stablecoins in 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 view USDe as an incredibly powerful primitive for the better Decentralized finance Applications and builders today. Ethena’s integration with Spark Liquidity Layer represents a big step towards enhancing the accessibility of USDe and sUSDe, allowing more users to benefit from native crypto assets.”

Ethena has emerged as one of the biggest players in the cryptocurrency sector. The market cap of its USDe stablecoin currently stands at over $5.79 billion, making it the fourth largest in the industry. Unlike Tether and USDC, USDe offers its holders a monthly return that currently stands at 11%. The leveraged version of Ethena, sUSDe, has more than $4.1 billion in assets.

Spark is also a prominent player in the industry, allowing users to save and borrow stablecoins. The market cap of its USDS stablecoin is $6.13 billion, making it the third largest coin in the sector.

Technical analysis of Ethena price

The daily chart shows that ENA has been in a strong downtrend over the past few weeks, falling from a high of $1.3085 earlier this year to the current $0.8345.

The token fell below the 50-day and 25-day EMAs, indicating that the bears are still in control.

In particular, Ethena formed a double top chart pattern at $1.3085, and a neckline at $0.8455. The double top is a widely known bearish indicator.

Given this pattern, ENA is likely to continue lower as sellers target the next psychological level at $0.50 – around 40% below the current price. However, a move above the key resistance level at $1 would invalidate the bearish outlook.