Ethena’s (ENA) price has recently experienced increased volatility, with large holders, or whales, driving significant sell-offs. Despite a brief surge in price over the past 24 hours, the asset’s overall bearish sentiment continues to dominate, putting ENA at risk of further declines, potentially even below $0.7.
**Whale Activity Triggers Sharp Price Decline**
Over the past month, ENA has struggled, recording a notable 22.58% drop in value as a result of ongoing bearish market conditions. This decline has been largely fueled by large investors offloading their holdings. One of the most significant sales involved an investor who sold $6.46 million worth of ENA, triggering a 9.84% price drop. This triggered further price pressure, highlighting the impact that whale activity has on the token’s price.
Recent data from Santiment reveals that large investors holding between 10 million to 100 million ENA tokens have been offloading their holdings, further driving down the price. These significant sell-offs have added pressure on ENA’s price, limiting the token’s potential for a rally.
**Increased Selling Activity and Waning Confidence**
Despite a brief resurgence in ENA’s price, which saw a 10.66% increase in the last 24 hours, the overall market sentiment remains bearish. The token’s trading volume surged by 53.77% during this brief uptick, indicating a shift in sentiment. However, selling pressure from investors has kept the price from gaining sustainable momentum, leaving ENA vulnerable to additional declines.
Santiment’s data indicates that in the past 24 hours, large investors continued to offload over 50 million ENA tokens, intensifying the sell-off. This wave of selling activity has been linked to 224 transactions, the highest recorded in the past week, further highlighting the ongoing negative sentiment surrounding ENA.
**The Impact of Declining Active Addresses**
Another key indicator of the bearish trend is the decline in active addresses. Over the past week, the number of active addresses has dropped by 19.27%, signaling waning participation from traders. Additionally, the number of new addresses joining the network has fallen by 11.81%, suggesting a lack of fresh interest in ENA. This indicates that market sentiment remains skewed towards selling, rather than buying.
**Support Levels and Potential for Further Decline**
From a technical perspective, ENA’s rally stalled when it reached the $0.9742 resistance level, as identified by Fibonacci retracement levels. This failure to break through the resistance has left the token approaching its next critical support level at $0.8784. If ENA fails to hold this support, it could face further price declines, with lower support levels at $0.7771 or even $0.7234 in the near term.
This scenario would mark a significant loss of trader confidence and could lead to even greater losses for investors holding ENA. The persistence of whale sell-offs, combined with the decreasing number of new market entrants, makes it difficult to foresee a quick recovery for ENA.
**Conclusion**
Ethena (ENA) is currently in a precarious position as whale-driven sell-offs continue to weigh on the token’s price. The recent uptick in price failed to sustain momentum, and as a result, ENA is now at risk of falling below $0.7 if selling pressure persists. As large investors offload their tokens and active participation from retail traders continues to decline, the outlook for ENA remains uncertain. Traders and investors should carefully monitor support levels to determine whether the token can rebound or if further declines are on the horizon.
