Ethena founder explains large token transfer: Can ENA recover from recent losses?

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Ethena drops 10.95% to $0.1871 today

Highlights

A major ENA token transfer by a large holder was described by Ethena's CEO as a security measure, not a sale.
The official statement targeted market fears of insider selling and possible liquidation, aiming to address recent speculation.
ENA trades below short- and medium-term moving averages, with technical signals indicating strong selling pressure and a 76% likelihood of further declines toward the $0.1737 support over the next 1 to 2 days.

Investor transfer clarified as security move to ease insider sale fears

Recent on-chain activity involving a sizable ENA token transfer by a large investor was explained by Ethena's founder and CEO, Guy Young, as a security precaution rather than a move to sell tokens, according to Cryptopolitan. This clarification specifically addressed market fears of insider selling or a potential major liquidation event, aiming to stabilize sentiment following heightened speculation. The official statement may curb some panic-driven reactions, though price action has remained under broader selling pressure.

Sustained bearish momentum as oscillators diverge near key resistance

On the technical front, ENA is trading below its MA-20 ($0.1935) and MA-50 ($0.2043) on the hourly chart, reflecting pronounced short- and medium-term selling momentum. The price remains above the longer-term MA-200 at $0.1199, indicating that the broader uptrend structure is still technically intact, with immediate resistance now seen at the Ichimoku Kijun level of $0.1986. Momentum indicators reinforce the bearish setup: both MACD and ADX signal Sell, while the RSI sits in oversold territory at 24.51, and CCI readings also confirm oversold conditions. Stochastic RSI reads Neutral, and the Awesome Oscillator remains neutral, signaling that although downside momentum is clear, there is some divergence in oscillator signals. Bull/Bear Power points to ongoing dominance by sellers within the session.

Downside risk prevails as price tests consolidation boundaries

In the next 1–2 trading days, ENA is expected to fluctuate within a $0.1737 to $0.2005 range, based on current volatility. There is a 76% probability of continued downward movement, while the likelihood of an upward reversal is 24%. The baseline scenario favors a sideways consolidation, but closing below $0.1737 would likely trigger further declines, whereas a move above $0.1986 resistance would be needed to initiate a bullish retracement.

Anton Kharitonov, expert at Traders Union, notes that ENA continues to struggle below key moving averages and remains pressured by negative market sentiment. He observes that the CEO's clarification on the token transfer as a security measure eased fears of insider selling but has not reversed the technical weakness. The analyst sees momentum indicators signaling a bearish setup while oversold readings suggest sellers still dominate. "Base case remains further downside or sideways consolidation unless ENA can reclaim $0.1986 as resistance," he says.

Earlier, analysts noted that sustained downside pressure on Ethena was driven by concentrated token unlocks, heightened insider activity, and technical weakness. The current analysis strengthens this overall bearish outlook, with the asset remaining in a pronounced downtrend and $0.1737 now emerging as the next key support level to watch over the coming sessions.

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

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.