Whale Investment of $4.41 Million Signals Potential Recovery of ENA - If Certain Conditions Are Met
Get the Lowdown on Ethena (ENA)
Say hey to this quick read
- Share
- Tweet
A brand-new multisig wallet's bagged 14.57M ENA worth around $4.41M from Binance and Bybit. This grand hoard has whales tipto swallow during a market storm!
The tokens found their way into a Gnosis Safe, implying a long-haul custody deal rather than a quick flip-flop. This move comes hot on the heels of Ethena's [ENA] recent 11.3% rate hike to $0.3379.
While it's cool to see these accumulations, it stirs questions about market faith and if this stash could lead to a shift in the current downtrend or just represent isolated opinions.
Locked up, loaded, and losing?
Even with this accumulation, 93.88% of ENA holders are still underwater, mirroring widespread losses across the market. Only 0.39% are swimming profit, with 5.73% treading water. With the current price staying put at $0.3379, many investors are going fishin' above the safe zone of $0.35 to $0.50.
This bearish price distribution casts a big ol' shadow that could limit recovery momentum, especially if frustrated holders start bailing out during price surges.
Lemme remind ya, for ENA to swim higher, it gotta clear the hurdle of persistent psychological and technical resistance!
Source: IntoTheBlock
Whale's gone wild after a mega netflow spike?
Bigwig netflows flooded in by 10,659% over the last month, pointing to hefty accumulation in May.
But here's the catch, in just the last week, the tail started wagging, crashing by -1982%, showing signs of distribution or idleness.
This wild swing highlights the volatility in whale behavior and lack of confidence in price direction. The long-term win is in the positive, standing at +430%, but this recent fall suggests cautious whales.
If whales don't jump back in the pool, ENA might struggle to attract fresh fish or sustain its latest rate hike.
Source: IntoTheBlock
Rising derivatives action: a buying or sell signal?
ENA's derivatives market is buzzin' with increased activity! The volume surged 110.53% to a whopping $900.84M, with Open Interest reaching $430M, too! This shows traders gettin' eager and speculative!
But keep in mind, these spikes can often lead to rollercoaster rides, especially when backed by weak spot demand. Data suggests that short squeezes helped fuel the rebound, and though Binance and Bybit saw some of the heaviest traffic, the liquidation spread ain't wide enough to confirm rock-solid bullish faith. Instead, it points towards opportunistic dips during price fluctuations.
Source: CoinGlass
$0.25 support: a worn-out tiger or gonna roar?
Technically, ENA continues to respect its broader consolidation zone, bouncing back from the low support near $0.25. The stochastic RSI is hangin' out near the oversold region, hinting at upward momentum.
Moreover, the recent climb aligns with a high-liquidation zone around $0.33-$0.34. Despite that, the resistance ain't weak below $0.50.
For ENA to break loose from its long-term downtrend, it needs to not only hold the $0.25 ground but also take over key zones with pick-up decrees and firm investor spirit.
Source: TradingView
While whale activity and derivatives engagement offer short-term cheer, ENA's rebound must deal with underwater holders and indecisive large-holder moves.
A lasting breakthrough depends on a return of accumulation, rising spot volume, and a shift in general investor vibes.
To join the wave of smart crypto updates, hop on our free daily newsletter dogwifhat: What you should do to profit from WIF's 24% dip
And hey, in the spirit of honesty and camaraderie, brace yourself for some enrichment:
Deep dive: Current ENA market pulse
- Whale Hoards: A massive deposit of 95.36M ENA tokens (worth approximately $28.4M) was loaded into Binance by six wallets, which received the goods from the Ethena Proxy wallet. Folks are keeping their eyes peeled for potential selling pressure or liquidity tweaks, but it could also indicate a smart readjustment by big investors [2][4]
- Soaked Holders: ENA's price struggle to hit a high note, despite its scheduled listing on Coinbase's roadmap. ENA 's price plummeted from $0.34 to $0.31 post-listing announcement, showin' resistance around $0.35 where many holders are swimmin' beneath break-even.
- Derivatives Action: Specific data on derivatives for ENA ain't included in the search results, but the overall crypto vibe, influenced by Bitcoin's recent tumult and broader market uncertainties, shows caution among traders [2][4].
Future: ENA ahead
- Coinbase Listing: The upcoming Coinbase listing can boost the project's visibility, liquidity, and access to investors. Historically, such listings have turbocharged token prices [5].
- Partnerships: Ethena Labs' partnership with Securitize for a dedicated RWA-focused blockchain called Converge has sparked interest in the project [5].
But remember, despite clear positive developments such as the Coinbase listing and juicy partnerships, ENA's future is also subject to broader market turbulence and potential selling pressure from significant holders.
- With the recent 14.57M ENA accumulation by whales, investors question whether this stash could lead to a shift in the current downtrend or merely represent isolated opinions.
- The $0.25 support level technically holds for ENA, but the resistance remains below $0.50, signifying that the crypto token needs to not only hold this ground but also garner increased spot volume and positive investor sentiment to break free from its long-term downtrend.
- As Ethena's [ENA] derivatives market buzzes with increased activity, traders are growing more speculative. However, weak spot demand andopportunistic dips during price fluctuations indicate that such spikes can lead to rollercoaster rides in the short term.
