Ethena (ENA) Loses Key Support Level, What’s Next?

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Ethena Token (ENA) is a cryptocurrency that experienced rapid growth towards the end of 2024 but is currently experiencing a significant downtrend. After falling below its crucial support level of $0.86, the token is now trading at $0.81 with no price fluctuations in the last 24 hours. Its 24-hour trading volume stands at $434.88 million, and it has a market capitalization of approximately $2.45 billion. Additionally, its 24-hour volatility is only 1.1%.

On January 14th, the token temporarily spiked up to $0.83, bouncing back from a previous low of $0.7255 that occurred earlier in the week. Yet, over the past seven days, ENA has experienced a 17% decrease in value.

On the monthly graph, ENA is currently showing a decrease of approximately 35%. The reason for this decline, according to experts, is due to a larger market decline and heavy selling by ‘whale’ traders. Specifically on December 26, 2024, these whale traders sold off around 3.36 million ENA tokens worth $3.17 million on Binance, causing the price of ENA to drop by 10%, reaching $0.92.

2025’s beginning saw a glimmer of hope with ENA reaching $1.27, yet this surge proved temporary. Since then, the token has retreated to its present value, causing apprehension among investors.

Key Levels

Crypto expert Ali Martinez commented on the movement of ENA’s price, pointing out that the token has recently surpassed a parallel price range band between $0.85 and $1.3 which it had been confined to since December early till January 13. Martinez warned that if ENA doesn’t manage to maintain $0.86 as a support level, it may experience a price drop, potentially falling to around $0.69 or $0.57.

Currently, Bollinger Bands analysis indicates high volatility due to the significant distance between the upper and lower bands. The token’s price has dipped below its 20-day moving average, moving nearer to the lower band. Analysts propose that if ENA maintains this level, it might lead to an uptrend in the upcoming days.

Enhancing the mystery, a whale (a significant investor) withdrew approximately 1.96 million ENA tokens, equivalent to $1.63 million, from Binance on January 15. This action suggests a potential long-term plan, as the investor chose to take control of their own custody (management) of the assets. These kinds of actions usually imply self-assurance in the asset’s future potential, even during periods of short-term market fluctuations.

A big investor took out $1.63 million worth of ENA tokens from Binance on January 15. This could mean they have a long-term plan for these assets and prefer to manage them personally. Such decisions often show confidence in the asset’s future growth, despite temporary market ups and downs.

ENA’s Market Cap Takes a Hit

From its debut in April 2024, ENA has shown remarkable expansion, hitting a market value of $3.8 billion as early as January 4th. Yet, the token’s market value has subsequently decreased to approximately $2.47 billion, positioning it at number 47 among the leading cryptocurrencies ranked by market capitalization.

Moreover, the trading volume of ENA over a 24-hour period has dropped by 27%, currently sitting at approximately $440 million. Although the immediate future looks unclear, the increased whale activity and potential price stabilization offer a small sign of optimism for the token’s revival.

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2025-01-15 12:18