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- Recent token unlocks have introduced significant selling pressure, contributing to $ENA’s price decline.
- Technical indicators such as RSI and MACD suggest a continuation of the bearish trend.
Ethena’s native token, $ENA, is under heavy fire as market bears tighten their grip. $ENA is currently priced at $0.319, witnessing a decline of over 8% in the past 24 hours, with $241 million in daily trading volume. Ranked 47th by market cap, Ethena currently commands a $1.89 billion valuation. But the numbers only tell part of the story, behind the scenes, a massive token unlock might have inspired this downward spiral, resulting in selloffs and triggering critical technical signals.
On June 2, approximately 40.63 million $ENA tokens, valued at around $12.73 million, were unlocked, representing about 0.7% of the circulating supply. This event was followed by another substantial unlock on June 5, releasing an additional 171.88 million tokens worth over $52 million. These unlocks have raised concerns about increased selling pressure and market dilution.
Historically, similar unlocks have led to price declines due to increased supply and profit-taking by investors. The significant deposit volumes to exchanges indicate that investors may be hedging or securing profits in anticipation of a market downturn.
Technical Indicators Signal Continued Downtrend
Technical analysis of $ENA’s price action reveals a bearish outlook. The Relative Strength Index (RSI) has been hovering around 55, indicating neutral momentum but quite unsafe to guarantee a comeback or ignite massive buying pressure.
A bearish crossover in the Moving Average Convergence Divergence (MACD) suggests waning momentum. Additionally, $ENA currently trades below several major moving averages, including the 10, 30, 60-day EMAs and SMAs, reinforcing the bearish sentiment.
The Bollinger Bands are beginning to widen, suggesting increasing volatility. Price action is testing the lower band, which could act as support or lead to a sharper decline if broken. If $ENA fails to hold the $0.30 level, a further slide toward the $0.27–$0.25 range is possible.
Market Sentiment Remains Cautious Despite Volatility
Market sentiment around $ENA remains cautious. Despite a brief 11% rebound to $0.3791 amid a broader cryptocurrency market recovery, the optimism is tempered by the substantial token unlocks, which have introduced significant supply-side pressure. Investors are closely monitoring these developments, with many adopting a wait-and-see approach.
The combination of increased token supply, bearish technical indicators, and cautious market sentiment suggests that $ENA may continue to face downward pressure in the near term. Investors should remain vigilant and consider these factors when evaluating their positions in $ENA.