You Won’t Believe What Happened After Ethena’s 17% Price Surge!

by

Well, well, well… looks like Ethena (ENA) managed a 17% rise after a rough start to 2025. But don’t get too excited just yet, folks. This surge came on the heels of some mighty big losses that had been racking up since January, and—surprise, surprise—right after a colossal token unlock event that’s shaking things up big time.

There’s some hope, sure, but let’s face it—ENA’s got some big ol’ hurdles to jump before it can confidently claim to be on the up and up.

Ethena Faces A Bearish Event

Now, don’t say we didn’t warn you. The market’s been buzzing with selling action, especially right before that March 5 token unlock. In the 24 hours leading up to it, a whopping 149 million ENA tokens—worth around $60 million—found their way to the exit. Talk about a fire sale!

Why? Well, folks were expecting the unlock to dump $833 million worth of tokens onto the market, causing a major imbalance between supply and demand. And as you might guess, that means prices tend to take a nosedive.

Token unlocks usually do more harm than good, diluting the value of the tokens already out there. This freaked out a whole bunch of investors—especially the big fish holding onto major stacks of ENA—causing a rush to sell and sending the price spiraling down.

But wait, there’s more! Long-term holders (LTHs, for those keeping score) have also been part of the problem. The Mean Coin Age (MCA) indicator took a dive, showing that LTHs were bailing on their positions even before the broader market started panicking.

LTHs are considered the backbone of any cryptocurrency, so when they start selling, it’s not exactly a good sign. Their exodus reflects a serious lack of confidence in the asset. And when they hit the road, it can cause a chain reaction, keeping the price in a downtrend for who knows how long.

ENA Price May Face Some Challenges

So, as of right now, ENA is sitting at $0.404, which is just barely hanging under that $0.434 resistance level. Sure, it’s up 17%, but it’s nowhere near enough to pull it out of the downward spiral. To really get moving, ENA’s going to need to break that $0.434 barrier and hold onto it for dear life.

But if the pessimism continues and things get worse—oh, buckle up—Ethena might just head toward a $0.326 support level. And if that support level decides to bail out too? We could be staring down the barrel of a $0.259 price tag, confirming all those bearish vibes.

But hey, there’s a sliver of hope! If investor sentiment flips and the crowd decides to start scooping up ENA at these lower prices, we might see a miracle breakout. If the $0.434 barrier gets a clean break and flips into support, ENA could be headed toward a much more promising $0.602. Now that would shake up the bearish narrative and set it on the path to recovery. Fingers crossed, right? 🤞

Read More

2025-03-06 16:39