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Ethena’s price is now testing a crucial $0.30 support level as over $50 million worth of $ENA tokens are being unleashed into the open market. Will this support hold?
After a brief bounce from the $0.28 low to $0.35, Ethena ($ENA) price has now reversed again, currently trading around $0.30, with the 24-hour trading volume at $245 million, up by 15%. The $0.30 level is now a critical support level as Ethena is releasing $52.97 million worth of tokens over the next seven days.
The strength of this support level will likely be instrumental in determining whether the selling pressure from this unlock pushes $ENA back down toward the previous key level around $0.25.
The good news is that the $0.30 level served as the launchpad for an explosive 100%+ rally to $0.67 in November last year. This suggests there is significant buying interest at this price point, which could help absorb the selling pressure from over $50 million worth of $ENA tokens about to be unleashed into the open market. If this support holds, $ENA will likely stabilize here or even rebound. However, if $ENA price slides below $0.30, there is a risk of further breakdown to $0.25.
Taking the whole context into account, including the upcoming Coinbase listing of $ENA and other positive developments in the project—most notably Ethena Labs’ partnership with Securitize to launch Converge — it’s unlikely $ENA will break below $0.25. Plus, $ENA price only dipped below that level once, hitting its all-time low of $0.19 in September last year, which suggests that $0.25 has proven to be a strong floor.