Token unlock pressure — Ethena drops 7.72%

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Ethena slides 7.72% today to $0.3119

Highlights

Ethena (ENA) fell 7.72% to $0.3119, trading well below its MA-20, MA-50, and MA-200, indicating strong bearish momentum.
A recent unlock of over $54 million in ENA tokens increased circulating supply, following volatility and the creation of a $400 million reimbursement fund after USDe stablecoin depegged on Binance.
Technical indicators including daily RSI at 33.16, Stoch RSI at 14.92, and CCI at -150.14 signal oversold conditions, with further downside likely unless ENA breaks above $0.4157 resistance.

Token unlock and stablecoin turbulence fuel active trading and debate

Ethena recently unlocked over $54 million in tokens as part of its ongoing token release schedule, drawing attention to its tokenomics and impacting circulating supply. The platform has reported increased trading activity and a market capitalization of around $2.5 billion. Following recent volatility, including a brief USDe stablecoin depegging on Binance and the subsequent establishment of a $400 million reimbursement fund, ENA remains among the more actively discussed crypto projects.

Bearish signals dominate as ENA remains deep in oversold territory

Technical indicators maintain a decisively bearish tone: ENA trades far below all major moving averages, with closest resistance at $0.4157 identified by the Ichimoku cloud. Momentum indicators such as MACD and ADX are firmly negative on the daily chart, while oscillators including RSI (33.16), Stoch RSI (14.92), and CCI (-150.14) highlight persistent oversold conditions. Awesome Oscillator and BBP readings further support a sellers’ market, and the continued presence of elevated volatility underscores risk of further price pressure.

Further downside likely as volatility persists and resistance holds

For the next five sessions, ENA is expected to fluctuate widely between $0.0859 and $0.2720, with a midpoint around $0.1790. A further decline remains the probable scenario, given prevailing negative momentum and oversold signals, with upside potential under 20%. Stabilization is unlikely without a decisive move above $0.4157, while more losses are expected if the asset breaks under recent support.

Viktoras Karapetjanc, expert at Traders Union, believes that despite ongoing selling pressure and negative technicals, Ethena (ENA) remains fundamentally resilient amid increased trading volumes and a strong presence in crypto discussions. He notes that the recent token unlock and the proactive establishment of a reimbursement fund demonstrate active project management, which may foster investor confidence as the market stabilizes. Karapetjanc sees the current oversold conditions as potentially setting the stage for a near-term rebound if more positive sentiment returns. "If ENA can reclaim $0.4157 and sustain renewed demand, I expect the bullish momentum to gradually recover," he states.

Last time, we reported that sellers dominated intraday action alongside a divergence between exhaustion and persistent selling pressure. Previously it was noted that momentum readings for ENA were mixed, reflecting a potential tug-of-war between short-term exhaustion and ongoing downside risk.

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.