Ethena [ENA] has faced challenges in the recent month, witnessing a decline of 22.58% in value amidst a prevalent bearish market sentiment.
Despite these hurdles, the token saw a short-lived resurgence in the last 24 hours, with a 10.66% price increase and a substantial 53.77% surge in trading volume, signaling a change in market sentiment.
However, continuous selling pressure from investors has limited ENA’s potential for upward movement, making it susceptible to further drops.
Large Investors Continue to Unload ENA, Adding Selling Pressure
CryptoCrypto reported on a significant investor, owning between 0.1% and 1% of ENA’s total supply, who recently sold $6.46 million worth of the token, resulting in a 9.84% price decline.
This trend has persisted over the past day, with clusters of major investors divesting more than 50 million ENA tokens, as revealed by Santiment data.
Santiment identified these major investors as wallets holding between 10 and 100 million ENA.
Noteworthy sell-offs by such groups often lead to further price drops, restraining the token’s potential for upward growth.
CryptoCrypto delved into additional data to gain deeper insights into the current scenario.
Whales Accelerate ENA Sell-Off as New Players Depart
Whale-driven sell-offs have heightened, with 224 transactions recorded—the highest tally in the past week, according to IntoTheBlock information.
A total of 50.64 million ENA tokens, valued at $47.9 million, were unloaded in this bearish wave involving major investors and market participants.
The number of active addresses spiked in the last 24 hours, but it still stands 19.27% lower than the previous week.
This indicates a potential new group of significant investors contributing to the sell-off, adding to the total of 1,500 active addresses as retail players increasingly join the trend.
Moreover, with active addresses dwindling in the past week and new addresses declining by 11.81%, market sentiment seems firmly bearish.
Further Price Decline Ahead
ENA faces a critical position on the chart. Its climb from the previous day halted at the $0.9742 resistance level, as indicated by the Fibonacci retracement.
The trajectory of ENA depends on its response at the $0.8784 support level, which it is currently approaching.
A failure to maintain or bounce back from this level could signify a substantial drop in trader confidence, potentially pushing the price towards lower supports at $0.7771 or even $0.7234, resulting in further losses for investors.
Should whale sales persist, alongside retail divestment and a continued decline in new address adoption, ENA could face increased downward pressure, posing a risk of deeper price erosion.