Analysis of ENA Token Price Movement
The upcoming token unlock of $728 million worth of ENA tokens on March 5 is expected to significantly impact the token’s price. With 2.07 billion ENA tokens being added to circulation, the total supply will increase by 66.19%, bringing the total circulating tokens to 3.13 billion. This substantial increase in supply may lead to a decrease in token price due to the laws of supply and demand.
Historically, large token unlocks have resulted in downward pressure on token prices. For example, the recent token unlock of $728 million worth of ENA tokens is likely to exacerbate the current downtrend. The token’s price has already dropped 18% in the past 24 hours, and the relative strength index (RSI) of 36.85 indicates that the token is approaching oversold territory.
From a technical analysis perspective, ENA is currently trading at $0.3476, with strong selling pressure indicated by the surge in volume and dominance of red candles. The 9-day Exponential Moving Average (EMA) continues to act as resistance, reinforcing the bearish momentum. The closest resistance level is $0.4028, and a high-volume reclamation of this level would indicate the beginning of a recovery.
The recent surge in sell-offs following a failed breakout near $0.4836 has also contributed to the token’s decline. The lack of obvious signs of a reversal suggests that the trend is still bearish for the time being. However, a stronger bullish move could target $0.4836, which would require a significant increase in buying pressure.
Predictions for ENA Token Price Movement
Based on the analysis, it is likely that the ENA token price will continue to decline in the short term due to the upcoming token unlock and current market sentiment. The price may drop below $0.3476, leading to new lows, unless there is a significant increase in buying pressure.
However, if the token price can reclaim the $0.4028 resistance level with high volume, it could indicate the beginning of a recovery. A stronger bullish move could target $0.4836, but this would require a significant shift in market sentiment.
In the long term, the success of Ethena’s crypto-native alternative to traditional banking, including its Ethereum-based synthetic dollar system, USDe, will be crucial in determining the token’s price. The launch of its blockchain and introduction of a TradFi-compatible token, as well as the rollout of iUSDe, a version of its staked USDe designed for institutional investors, are expected to be key drivers of growth.
Key Statistics and Events
- $728 million worth of ENA tokens to be unlocked on March 5
- 2.07 billion ENA tokens to be added to circulation, increasing total supply by 66.19%
- ENA token price has dropped 18% in the past 24 hours
- Relative strength index (RSI) of 36.85 indicates the token is approaching oversold territory
- 9-day Exponential Moving Average (EMA) continues to act as resistance, reinforcing bearish momentum
- Closest resistance level is $0.4028, with a high-volume reclamation indicating the beginning of a recovery
- Ethena’s USDe stablecoin has a market capitalization of $5.4 billion, making it the fourth-largest stablecoin
- Ethena plans to launch its blockchain and introduce a TradFi-compatible token, with a focus on institutional investors in Q1 2025.
