The post ENA Token Faces Pressure with Market Dynamics appeared on BitcoinEthereumNews.com.

The Ethena (ENA) token has seen a notable price drop of around 4% in the past 24 hours, attributed primarily to a substantial $10 million liquidation executed by Amber Group. This transaction has sparked increased volatility signals in the market, indicating challenges for the token to hold crucial resistance thresholds. What Caused the Price Drop?How Do Unlockings Affect Market Stability? What Caused the Price Drop? Amber Group’s recent move involves the transfer of $10.35 million in ENA tokens to the Binance exchange. Two weeks earlier, approximately $2.5 million of these tokens were purchased at an average price of $0.3979 from a competing exchange. This influx of tokens has raised market supply, subsequently intensifying selling pressures. How Do Unlockings Affect Market Stability? This month, Ethena unlocked 2.06 billion tokens, with 94.19 million recently entering circulation, further driving the price decline. While increased liquidity from token unlockings can be beneficial, they also pose significant downward pressure on token values. Such supply surges lead to rising apprehension among investors, complicating price stabilization. Market indicators reveal a 1% decrease in weekly prices and an 11% drop over the month. This trend highlights a shift towards caution among traders. Key points include: The recent $10 million sale by Amber Group heightened market volatility. Increased token supply from unlockings has strained investor confidence. Failure to maintain the $0.48 resistance level could lead to further selling. Current price dynamics suggest that without a robust defense from bullish traders, the market may face additional downward pressure, potentially triggering a fresh wave of selling activity ahead. Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research. Source: https://en.bitcoinhaber.net/ena-token-faces-pressure-with-market-dynamics

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Filed under: News - @ March 22, 2025 6:24 pm