Ethena (ENA) Reached the Bottom: Will the Decline Extend Ahead?

Ethena faced a massive selloff and tumbled to its all-time low mark in the last few hours. Amidst the market selloff, ENA hit the most and dragged

Ethena (ENA) price hit a new all-time low (ATL) this week. As the market selloff continues, several tokens are facing the brunt of the bear run. Among them, ENA price took the biggest hit, tumbling by more than 35%.

The token began the week above the pivot point of $0.3300. However, as the bearish pressure mounted, ENA price slipped below this crucial level. This movement triggered a massive selloff, causing the token to plunge to its lowest point yet.

As the week progressed, Ethena Labs announced the launch of $USDe on the Bybit cryptocurrency trading platform to be used as margin collateral. This new integration will allow active users on Bybit to borrow funds at an attractive rate of 20% APR to expand their trading opportunities using their $USDe.

At press time, ENA price trades around $0.322, showcasing a decline of over 8.20% in the last 24 hours. Furthermore, its trading volume also slipped by 15%, indicating a lower anticipation among traders for a selloff ahead.

Regarding the market cap, ENA was ranked at 96 with a market cap of $458 Million. It has a total supply value of 15 billion.

As ENA price continues to trade within a falling channel, the lowest edge was observed around $0.2700, and the token might slip to the respective mark soon.

If any significant bounceback leads ENA price above the $0.3600 mark, it will be invalidated.

ENA Price Chart | Source: Santiment

Falling below the key moving averages, the short-term and long-term projections remained bearish without any recovery signs yet.

The bearish market sentiment gave sellers a boon as they succeeded in breaching its ATL mark this week.

@Tekkaadan, in his tweet, said that ENA is about to reach the open price.

$ENA about to tap its opening price. WILD. pic.twitter.com/DHKeFsMKPM

— Tekka (@Tekkaadan) December 21, 2023

Its technical indicators guided a strong bearish stance. The RSI curve sailed in the oversold trajectory, conveying a strong bearish projection.

Similarly, the MFI index showed a major outflow directing the negative stance. The ADX indicator also indicated that sellers have strengthened their grip and want to stretch the fall ahead.

Despite its recent struggle, ENA still boasts a market cap of $458 Million with a circulating supply of 1.43 Billion.

Active Addresses And Network Growth On A Bearish Note

Amidst the severe price drop, the active addresses data noted a flat movement near the downside region around 677, signifying the lower investor confidence and optimism for ENA.

Active Adresses Data | Source: Santiment

Likewise, the network growth data pointed to the same. No significant activity has happened, which lagged the token’s growth to a lower extent.

The market selloff has increased the velocity, as traders increased the velocity trades in the last few sessions in a panic situation.

Its Open Interest (OI) fell over 9.90% to $86.02 Million, showcasing intense unwinding data in the past 24 hours.

If the selling pressure extends, the ENA price might slip toward the pivot mark of $0.300. This was followed by $0.280. Conversely, if any pullback happens, it may go toward the resistance zone of $0.350, followed by $0.380.

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 any of the tokens or assets mentioned in this article. Please do your own research before making any financial decisions.