Ethena (ENA) Price Surges Amidst Token Unlock: Bullish or Bearish?

Ethena's ENA token price defies expectations, rallying before a major unlock. Will the bullish trend continue, or will the unlock trigger a downturn? A deep dive into market sentiment and technical analysis.

Ethena (ENA) Price Surges Amidst Token Unlock: Bullish or Bearish?

Ethena's ENA token is making waves! Despite an impending token unlock, the price is rallying, leaving investors wondering what's next. Let's break down the key trends and insights.

Defying Gravity: ENA's Price Rally

In early August 2025, Ethena (ENA) showed impressive strength. On August 5th, the price jumped 13.17% to $0.622, briefly hitting $0.628. This surge occurred even as 250 million ENA tokens were moved to exchanges, signaling a potential sell-off ahead of the unlock.

Trading volume soared 28% to $1.14 billion, indicating renewed investor interest. The cryptocurrency successfully held the $0.51 support level.

Token Unlock: A Looming Event

On August 6th, Ethena faced a significant supply event: the unlock of 171.85 million tokens, valued at approximately $103 million. This represents about 2.70% of ENA’s total market cap, making it one of the largest unlocks recently.

Historically, ENA has performed well in the week following unlocks. However, this unlock is larger than previous ones, adding uncertainty.

Bullish Sentiment and Technical Indicators

Market sentiment shifted from negative to positive, with buy volume exceeding sell volume. Coins are also moving off exchanges, suggesting holders plan to store them long-term.

Derivatives trading activity increased, with Open Interest jumping 17.47% to $1.14 billion. The Long/Short Ratio reached 1.0008 across all exchanges, and even higher on Binance, indicating traders expect ENA price to rise.

Technical indicators support this bullish sentiment. The Stochastic RSI rose after a bullish crossover, and the Chaikin Money Flow has stayed positive.

USDe's Role in Ethena's Ecosystem

The growth of Ethena’s native stablecoin, USDe, is fueling confidence. USDe's supply increased by 75% in July alone, becoming the third-largest stablecoin by market cap. Ethena has also become the sixth-largest DeFi protocol by total value locked (TVL).

Analyst Perspectives and Price Targets

Analysts suggest that if buying momentum continues, ENA could retest $0.68 and potentially reach $0.70. If buying pressure fades, support may be found around $0.55.

Crypto Seth analysis revealed that ENA price was forming a massive double bottom. The 100-day and 200-day moving averages have just been surpassed by the price, which further supports the bullish bias. Should bulls clear their way above the $0.70 mark, the subsequent resistance bands are between the $0.95 and $1.10 levels.

Final Thoughts: Will ENA Keep Climbing?

Ethena's ENA token is in an interesting spot. The upcoming token unlock could introduce volatility, but strong market sentiment and the growth of USDe are providing support. Whether ENA can continue its climb remains to be seen, but for now, all eyes are on how it handles this significant event. Good luck out there!