Ethena’s ENA token faces downward pressure after a major holder deposited 16.86 million tokens into Coinbase Prime, booking a $15 million loss at around 81% below cost basis. Despite this sell-side influx, price holds near $0.14-$0.15 with controlled candles, indicating market absorption rather than panic selling.
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Major deposit introduces sell pressure: A holder realized significant losses, adding liquidity at lows not seen in months.
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Price consolidation in descending channel: ENA respects bearish structure, with RSI below 40 signaling weak momentum.
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Buyer absorption evident: 90-day Spot Taker CVD stays positive, countering 60% drop from highs, while funding rates turn positive to limit downside risk.
Discover the latest Ethena ENA price analysis amid major holder sell-off and market absorption. Explore key supports at $0.1315 and potential rebounds. Stay informed on crypto trends for smart trading decisions.
What is the current Ethena ENA price trend?
Ethena ENA price remains under pressure, trading between $0.14 and $0.15 following a large deposit by a major holder. This move realized substantial losses, yet the market has absorbed the sell-side liquidity without sharp declines, suggesting anticipation among participants. The token’s structure favors sellers in a descending channel, with potential for further pullback unless resistance at $0.165 is reclaimed.
Why has Ethena ENA faced recent selling pressure?
A significant holder transferred 16.86 million ENA tokens to Coinbase Prime, resulting in an estimated $15 million loss compared to an $18.53 million cost basis. This represents a roughly 81% drawdown, highlighting exhaustion among long-term positions. Such transfers often signal capitulation, increasing distribution risks during any short-term rallies. According to data from on-chain analytics, many holders are still underwater, which sustains fragile equilibrium in the market. Price action post-deposit showed controlled candles rather than disorderly selling, pointing to prepared buyers stepping in at these levels. Nonetheless, the scale of losses underscores ongoing vulnerability for ENA.
Looking deeper into market dynamics, ENA has declined over 60% from its mid-cycle highs, yet indicators like the 90-day Spot Taker Cumulative Volume Delta (CVD) remain net positive. This divergence reflects aggressive buying during dips, potentially indicating defensive accumulation by spot traders. Historical patterns in similar setups show that positive CVD can blunt bearish momentum, but without price confirmation through higher highs, it merely supports stabilization. Experts in cryptocurrency trading note that such metrics often precede periods of consolidation before clearer trends emerge, based on observations from platforms like CryptoQuant.
The Relative Strength Index (RSI) hovering below 40 further reinforces subdued momentum, lacking the oversold bounce typically seen in reversals. ENA’s price respects a descending channel since breaking down from $0.30, with recent consolidation near the upper boundary. A deeper pullback toward $0.1315 aligns with prior lows and channel projections, serving as a critical support test. Data from TradingView charts illustrate this symmetry, where buyers have defended key levels but failed to disrupt the sequence of lower highs.
Source: TradingView
In terms of leverage, the OI-Weighted Funding Rate has shifted from negative territory around -0.01% to positive at +0.005%. This change came after a contraction in Open Interest to $55-60 million, following long liquidations. Positive funding implies longs now pay shorts, but rates remain shallow, indicating cautious positioning rather than aggressive bets. According to CoinGlass data, this setup reduces liquidation cascade risks on further downside, promoting balance over volatility spikes.
Source: CoinGlass
Liquidity analysis reveals asymmetry, with short liquidations clustered above current prices near $0.20-$0.22 on Binance, totaling over $5 million in exposure at 25x-50x leverage. In comparison, long liquidations below $0.18 are sparse, showing limited downside traps. This profile, per CoinGlass liquidation maps, suggests upward moves could trigger more forced buying via short squeezes than downside would from longs. However, it does not confirm direction, as recent bets lean toward short continuations.
Source: CoinGlass
Source: CryptoQuant
Frequently Asked Questions
What caused the recent Ethena ENA price drop to $0.14?
A major holder deposited 16.86 million ENA into Coinbase Prime, realizing $15 million in losses at 81% below cost basis. This added sell-side liquidity, pushing price to multi-month lows around $0.14-$0.15. Market response was contained, with absorption preventing sharper falls, based on on-chain transfer data.
Is Ethena ENA poised for a recovery from current levels?
Ethena ENA shows signs of stabilization with positive Spot Taker CVD and funding rates, but bearish channel structure points to a potential test of $0.1315 support first. Recovery would need a break above $0.165 resistance with increased volume, as per technical indicators from TradingView and CryptoQuant.
Key Takeaways
- Downside bias persists: ENA’s descending channel and RSI below 40 suggest testing $0.1315 before rebound potential.
- Buyer absorption active: Positive 90-day CVD indicates defensive demand countering 60% declines from highs.
- Leverage asymmetry aids stability: Short liquidations above price and shallow positive funding reduce volatility risks.
Conclusion
In summary, the Ethena ENA price navigates fragile equilibrium after a major deposit-induced sell-off, with selling pressure from underwater holders met by accumulating buyers. Technicals like the descending channel and positive CVD highlight downside risks toward $0.1315 alongside stabilization signals. As leverage balances out, monitor support holds for credible recovery setups. Investors should track volume expansion for trend shifts in this evolving crypto landscape.
Final Thoughts
- ENA’s structure favors a downside test of $0.1315 before any recovery attempt.
- A rebound requires decisive buyer intervention and a reclaim of channel resistance.
Source: https://en.coinotag.com/ethenas-ena-may-test-0-1315-support-as-buyers-absorb-sell-pressure
