ENA (Ethena) Crypto Has Tanked 26% in the Past Week, With Significant Volatility

Major sell-offs, including a $14.1M loss by a large staker, have driven the bearish trend. High liquidation and bearish technical indicators

Ethena (ENA) crypto encountered a significant sell-off last week, with its price dropping by 26% amid rising selling pressure.

What Happened: According to data shared by Lookonchain on Friday, the largest Ethena staker has unstaked all 23.24 million ENA tokens ($17.3 million), booking a loss of $14.1 million by selling 19.36 million tokens.

The staker, who had earlier withdrawn 23.24 million ENA tokens from Binance between April 5 and April 10 at an average price of $1.29, currently has 3.88 million ENA tokens remaining, valued at $2.74 million, showing a loss of over $13 million.

With profit booking in place, Ethena lost trading volume, showing a slight increment of 2.7%. At press time, the crypto’s market cap decreased by over 2.5% in the last 24 hours.

Ethena crypto showed high liquidity based on its market cap, making it easier to buy and sell in different market conditions with 16.20%.

Additionally, the circulating supply of the crypto stands at 1.52 billion ENA, while the total supply is 15.0 billion ENA. It has a fully diluted market cap of $10.777 billion.

Ethena’s market cap dominance is 0.04%, showing a market cap value of $1.09 billion. Moreover, the value of the traded volume for the crypto in the last 24 hours is $178.492 million.

Ethena Crypto Derivatives Data Analysis: The crypto derivatives saw a surge in trading activity with a 28% rise in the crypto trading volume.

There has been a surge in the open interest over the last 24 hours in crypto, while the long liquidation has been very high at $489.33K. It shows that sellers are ruling over the crypto price.

The liquidation chart of the Ethena crypto further shows a consistent advance in the long liquidations over the last few weeks.

The blockchain data of the Ethena crypto further shows a consistent surge in the total value locked (TVL), which shows that investors have confidence in the crypto environment.

Also, the current TVL of Ethena is $3.435B, followed by a total raised amount of $20.0M.

ENA Crypto Technical Analysis: The price of the ENA crypto can be seen following a strong downtrend on the charts, followed by a consistent decline over the last seven days.

The ENA crypto price was trading in an uptrend from mid-May 2024 to the beginning of June, and then it started to witness profit booking.

The crypto price led to a decline of 32% from the swing high of $1.08. That behavior of the crypto price also led to a rising wedge pattern, and the price has currently broken below the same.

ENA/USD Chart by TradingView

Looking at the technical indicators, a bearish outlook can be discovered as the majority of technicals support the weakness in the price of crypto.

The price of the ENA crypto has declined below the 50-day EMA on the daily chart and has given a closing below the same.

The MACD and the signal line formed a bearish cross and declined to a negative trajectory.

The RSI also follows a bearish cycle on the charts and has declined below the 50-day SMA and the 50-level.

Summary: Ethena (ENA) crypto encountered a 26% price drop in the past week, with significant volatility.

Major sell-offs, including a $14.1M loss by a large staker, have driven the bearish trend. High liquidation and bearish technical indicators, including MACD and RSI, further suggest a continuing decline in ENA’s value.

Further looking at the technical charts, we can see that the ENA crypto price might take support at the lower levels of $0.510 and $0.6560, followed by the resistance levels of $1.0780 and $1.460.

This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading.