Ethena’s ENA token has seen a sharp decline in value, influenced by the prevailing global crypto bearish market sentiment. Over the past month, the token’s price has dropped by over 38%, reflecting widespread investor pessimism.
In the last seven days alone, the ENA token has fallen by an additional 10%. At press time, the ENA token is trading at $0.8045, marking a 5.41% decrease in just the past 24 hours. This continued decline highlights the token’s struggle to maintain its value amidst market uncertainties.
ENA/USD 24-Hour Chart (Source: CoinStats)
Consequently, the token’s intraday market capitalization has also suffered, decreasing by 5.35% to reach a valuation of $1.2 billion. This valuation shift has positioned the ENA token as the 65th largest by market cap, reflecting its recent market performance.
Furthermore, ENA’s trading volume has echoed this descending trajectory. Over the last 24 hours, trading volume has diminished by 11.77%, totaling $137.8 million. This relentless bearish sentiment enveloping the ENA token indicates an absence of investor confidence, which might lead to additional price declines in the imminent future.
Whale Incurs Massive Losses Amid ENA’s Decline
According to a Lookonchain X (formerly Twitter) post, a whale investor recently conceded due to the ongoing bearish sentiment surrounding the $ENA token. Based on the post, this individual unstaked and sold their $ENA holdings at a substantial loss, resulting in a total financial hit of $2.71 million.
A whale capitulated due to the continuous decline of $ENA, unstaking all $ENA and selling it at a loss, with a total loss of $2.71M!
He withdrew 6.01M $ENA($5.71M) from #Binance at $0.95 on April 5 and staked it.
As the price of $ENA increased, he withdrew another 3.32M… pic.twitter.com/P9Oh9x1VFn
— Lookonchain (@lookonchain) May 13, 2024
On April 5, the investor withdrew 6.01 million $ENA tokens, valued at $5.71 million, from Binance at a price of $0.95 per token. Initially, the price of $ENA began to rise, leading the investor to increase their stake further. On April 10, they withdrew an additional 3.32 million $ENA tokens from Binance, this time valued at $4.76 million, at a higher price of $1.44 per token.
However, the anticipated upward trend did not continue. Instead, the price of $ENA started to fall shortly after this second withdrawal. By April 25, the whale began to capitulate, unstaking their $ENA tokens and selling them at a loss.
To date, the investor has deposited a total of 8.33 million $ENA tokens, valued at $6.94 million, back into Binance. The average price at which these tokens were sold was $0.83 per token. As a result, the investor realized a total loss of $2.71 million. Despite the heavy losses, the whale still holds 1 million $ENA tokens, currently valued at $823,000.
ENA’s Price Action
On the technical front, the ENA token’s MACD indicator is trending downward, currently positioned at -0.0165. This indicates a short-term bearish trend for the token. Moreover, the MACD line moving below the signal line supports the possibility of continued downward movement for the ENA token.
ENA/USD 4-Hour Chart (Source: Tradingview)
In parallel, the MACD’s histogram reveals expanding red bars beneath the zero line, reinforcing the bearish momentum. This indicates persistent selling pressure, potentially driving further price depreciation in the near term.
Concurrently, the RSI indicator, positioned at 35.84, intimates that the ENA token is approaching oversold territory. This scenario could unveil a prospective buying opportunity for traders aiming to enter the market at diminished prices. Nevertheless, as the RSI has yet to breach the 30 threshold, denoting an oversold state, there remains a possibility for additional downward movement prior to any prospective rebound.
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