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- ENA dropped 10% amid fading volume and weaker liquidity.
- Futures traders maintain a strong bearish bias despite oversold charts.
- Upcoming token unlocks could fuel more selling pressure.
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Ethena’s native token, ENA, has entered a make-or-break phase after a sharp 10% price drop left traders questioning whether the correction is temporary or the start of a deeper slide. The decline came amid fading trading volumes and tightening liquidity — a combination that often heightens volatility once selling pressure mounts.
Data from Messari shows a steady fall in ENA’s trading activity, suggesting that the excitement driving previous rallies has cooled. Lower liquidity typically magnifies price swings, leaving ENA more vulnerable to sharper moves if sentiment worsens.
Oversold Signals Meet Bearish Futures
On the charts, ENA’s Stochastic RSI sits near 22 — deep in oversold territory — hinting at a possible short-term rebound. The key support lies around the $0.45–$0.47 range, where bulls will likely attempt to defend the structure.
However, futures data paints a more cautious picture. According to CryptoQuant’s Taker CVD, leveraged traders have maintained a bearish bias for over 90 days, consistently favoring short positions. This divergence — oversold spot indicators versus bearish futures sentiment — underscores the uncertainty hanging over ENA’s next move.
Token Unlock Adds Downside Pressure
Adding to the strain, a 171.88 million ENA unlock worth about $101 million hit the market on October 5, expanding supply at a time of waning demand. Historically, such token unlocks trigger short-term selloffs as holders offload new tokens.
A second unlock — 40.63 million ENA valued around $21.8 million — is set for November 2, potentially extending bearish momentum if market conditions don’t improve.
Outlook: Bounce or Breakdown Ahead?
If ENA manages to hold its wedge support zone, a modest rebound toward $0.55–$0.60 remains possible. But sustained bearish positioning and upcoming unlocks could easily tilt the balance toward another leg down.
For now, Ethena sits at a crossroads — oversold but not yet out of danger. Traders are watching closely to see whether resilience or further weakness defines ENA’s next chapter.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: ENA Price Falls Below Support as Ethena Launches Rewards
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
