Ethena (ENA) Has Gained Significant Traction Ever Since Its Launch

By By DeFi Mochi. Updated Apr 1, 2023 at 1:10 a.m. PDT.

Ethena (ENA) has gained significant traction ever since its launch, but its price performance gains excitement and skepticism simultaneously.

Considerable concerns exist as the token has not created a new ATH in a year. To add to this, one crypto analyst warns retail investors to stay away from this altcoin. Let’s discuss this.

Analyst Recommends Staying Away From Ethena

Other than Ethana’s price performance, the most significant concern is a high valuation. According to crypto analyst ‘DeFi Mochi,’ ENA’s fully diluted valuation (FDV) stands at a staggering $6.7 billion, whereas early investors got in at an average FDV of just $82 million. This means the early investors are already making 72x despite the current crypto market crash.

Although this is an impressive point, there’s a high risk of a sell-off, putting retail investors at risk of losing everything. This is because their trade could excite liquidity for early adopters, as they would rush to take profits.

Another critical point or red flag is that there’s high Venture Capital (VC) dominance, making it again vulnerable to a sell-off. In addition, the ENA token unlock is another factor to consider.

Just a few days ago, 2.07 billion tokens were unlocked, and 937.5 million tokens will be released on April 2, 2025, which could lead to significant downward pressure on the ENA price.

Based on these points, crypto analysts advised new investors to stay cautious about this altcoin’s price performance.

How’s Ethena Price Performing Today?

After a significant recovery, the Ethena price gained bullish momentum. It trades at $0.4499, with a 24-hour volume of $436.92 million, showing a high demand among investors. Although the token is handling the market turbulence quite well, it is 70% away from its ATH of $1.52, set a year ago.

Looking at its derivative data, long positions are clearly dominant, as the traders are betting on the ENA price rally. However, its volatility is high as its holders faced high liquidation amid the crash.

Will ENA Price Rally Continue?

The future price outlook for ENA remains uncertain as there’s high volatility. A few analysts believe that the token’s crucial support is $0.46, and if it falls below, it will retest between $0.42 to $0.44, the current levels.

Once it breaks out above $0.50, it can lead to an uptrend toward $0.55 and higher toward $0.60. However, that would require a jump from the current levels, especially as the recent 2.07 billion unlock could introduce additional volatility.

Investors must cautiously track the Ethena price trajectory and market trend before jumping into any decision.

The post Ethena Price Today: As ENA Remains Unusually High, One Analyst Recommends Staying Clear