Current Valuation of Ethena’s ENA Token
Ethena’s ENA token is currently valued at $0.2546, marking a 4% decrease over the last day and contributing to a total decline of 17% over the previous month. This dip comes as the cryptocurrency approaches a significant unlocking event, where approximately 40.63 million ENA tokens, worth about $10.34 million, are scheduled to be released into circulation today, July 2. This amount reflects 0.67% of the circulating supply, and with only 39% of the total 15 billion ENA tokens currently in circulation, this unlock could exert continuous pressure on the market.
Market Activity and Trading Volume
In the past 24 hours, trading activity has shown signs of caution. ENA has stabilized between $0.2507 and $0.2659, but remains below critical resistance levels, which could reflect the market’s anxiety regarding the nearing token release. Some analysts from Tokenomist have noted the potential effects this may have on liquidity, especially as prior unlocks have typically been absorbed by the market without long-term negative impact. Nevertheless, the atmosphere is uncertain due to dwindling trading volumes and participation in derivatives trading – with volumes plummeting nearly 29% to $115 million, and derivatives transactions decreasing by 37.7% to $316.75 million. Additionally, open interest has dropped to $319.06 million, signifying trader hesitance in the lead-up to the unlock.
Technical Analysis
From a technical standpoint, ENA continues to face selling pressure. Several moving averages, ranging from 10 to 200 days, are signaling a bearish trend. The price remains below the 20-day Exponential Moving Average (EMA) and Simple Moving Average (SMA), indicating weakening short-term momentum. Despite some indicators such as the relative strength index nearing oversold levels at 41.4, they have yet to suggest a strong trend reversal. Moreover, the narrowing of the Bollinger Bands hints at reduced market volatility, with the current price hovering close to the lower limit of the bands—this could either signal an imminent downturn or a potential reversal if trading volumes pick up.
Future Outlook
Should ENA maintain its position above the support level of $0.25 and navigate the token unlock successfully, there is a possibility for fresh buying interest to drive the price back toward the $0.28 mark. A closing price above this threshold could pave the way for a test of the $0.30 to $0.32 range. Conversely, failure to sustain above the $0.25 support, particularly if accompanied by low trading volumes and an increase in circulating tokens, could pose a risk for further declines. A significant fall below $0.245 could undermine market confidence, shifting focus toward the support zone around $0.22 to $0.23.
