Ethena (ENA) Price Below $1: Will Whales Prevent Further Decline?

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As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed my fair share of bull runs and corrections. The current situation with Ethena (ENA) is no exception. With a market cap of $2.619 billion, it’s still holding strong at the 50th position among cryptocurrencies, but the ongoing correction seems to be concluding the long-awaited bull run.

Currently standing as the 50th largest cryptocurrency with a market capitalization of approximately $2.65 billion, Ethena (ENA) is trading at around $0.90, showing a 20.7% volatility over the last 24 hours. Over the past 30 days, it has demonstrated a positive growth of 68%. While this growth indicates a successful bull run, the ongoing correction seems to mark the end of this prolonged uptrend.

The intense selling activity is threatening significant support thresholds, causing the Ethena price to dip below $1. In essence, the current Ethena price trend suggests a prolonged downturn within the correction period, given the market’s unstable nature.

Ethena (ENA) Price Analysis

This week, ENA’s price plummeted significantly by 28.44%. Over the last five days, the Ethena market has seen a series of bearish trends, as indicated by successive bearish candles. The recent slide has breached both the $1 psychological level and the 20-day Exponential Moving Average (EMA) line, suggesting a continued downward trend.

The reversal in the bearish trend, initiated by a fresh peak at $1.32, has resulted in a drop in Ethena’s price to $0.90. At the moment, Ethena is being traded at $0.8943.

As gravity takes effect, the RSI line for daily trading is dropping below the midpoint, having moved out of the overbought region by 50%. This indicates a significant decrease in purchasing activity and signals a potential prolonged adjustment or correction ahead.

On the weekly graph, a significant reversal occurs following six consecutive weeks of an upward trend, which contradicts the bullish momentum from the previous week and presents as a bearish weekly candlestick. Additionally, this decline weakens the progress made during the breakout of the rounding bottom formation.

Whale Holdings Grow amid Market Crash

Regardless of the significant adjustment, the whales continue to display a constructive outlook towards their investments. Over the last month, their balances in USD, ranging from $100,000 to $1 million, have grown impressively by approximately 108.67%.

As a crypto investor, I’ve noticed a significant rise in the number of whales (large-scale investors) adding more than $10 million to their holdings, which has increased by approximately 89.85%. However, it’s worth noting that there’s been a substantial 20% drop among these same whales, who have been investing between $1 million and $10 million.

Currently, the retail sector is showing a great deal of enthusiasm, with notable increases across different investment levels. For instance, investments ranging from $100 to $1,000 have experienced a 52% rise, those between $1,000 and $10,000 have jumped by 67%, and the highest category, $10,000 to $100,000, has seen an increase of 105.54%. This growth is evident in both retail investments and high-net worth investment portfolios. On the other hand, the middle-class segment appears to be experiencing some volatility.

Whales Addresses Support Recovery Chances

With an increase of 27%, more addresses are accumulating a balance of between 1 Million and 10 Million ENA tokens. Additionally, about 9.52% of the addresses have augmented their holdings to between 10 Million and 100 Million ENA tokens.

Moreover, the amount of ENA tokens held between 100 million and 1 billion has risen by 16%. On the other hand, a decrease of 14.29% is seen in wallets containing 1 billion to 10 billion ENA tokens, which serves as a warning.

Even though Ethena has experienced some small ups and downs and a general downtrend in price, there’s still strong backing from both retail investors and ‘whales’. This means that when the overall market settles, the upward trajectory of Ethena is likely to resume, potentially leading to a bullish phase for Ethena.

Ethena Whales Add $13.42M in 3 Days

Based on evidence found on the blockchain, it appears that a large investor (often referred to as a “whale”) has been actively buying Ethena. Over the last three days, a new wallet has withdrawn approximately 13.65 million ENA tokens from Binance, which equates to around $13.42 million. This action suggests that these whales are increasingly backing Ethena.

Whales are accumulating $ENA.

Over the past 3 days, this newly created wallet has withdrawn 13.65M $ENA($13.42M) from #Binance.

— Lookonchain (@lookonchain) December 20, 2024

As a researcher, in summarizing my findings, it’s clear that even during broader market corrections, the backing from whale investors for Ethena is robust. These whales are proactively seizing the temporary price drops, thereby increasing the potential for a bullish turnaround. Consequently, I anticipate that the ENA price will experience a recovery by year-end.

Ethena Key Levels

In the near future, with ongoing volatility, the price of ENA could approach its 50-day or 200-day moving averages at around $0.79 and $0.63 respectively. Given a significant drop of approximately 26%, this cryptocurrency may present numerous chances to buy at lower prices.

If the market trend is positive, a rebound from the 50 Exponential Moving Average line could potentially reach the significant level of $1.00 again.

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2024-12-20 13:19