Ethena Price Rises 17%, But Here’s Why ENA May Fail Breakout
The post Ethena Price Rises 17%, But Here’s Why ENA May Fail Breakout appeared on BitcoinEthereumNews.com.
Ethena (ENA) has recently experienced a price uptick of 17%, following a challenging start to the year. This rise, however, comes after significant losses that started early in 2025, exacerbated by a massive token unlock event in the last 48 hours. Despite some positive movement, ENA still faces major hurdles in securing a sustained breakout. Ethena Faces A Bearish Event The market sentiment surrounding Ethena has been marked by increased selling activity, especially in the days leading up to the March 5 token unlock. Within a 24-hour period before the event, approximately 149 million ENA tokens, worth around $60 million, were sold. This was in response to the expectation that the unlock, which involved $833 million worth of tokens, would flood the market, affecting the supply-demand balance and driving down prices. Token unlock events often result in price declines, as the influx of new tokens dilutes the value of existing ones. This dynamic has spooked many investors, especially those who held large amounts of ENA, leading to a sharp rise in balances held on exchanges. Many opted to sell in an attempt to prevent further losses, further contributing to the downward pressure on the price. Ethena Supply On Exchanges. Source: Santiment Ethena’s overall momentum has also been negatively affected by the actions of long-term holders (LTHs). The Mean Coin Age (MCA) indicator has shown a significant downtick. This signals that LTHs began liquidating their positions even before the broader market reacted. LTHs are considered the backbone of any cryptocurrency. Thus, their selling behavior is often a sign of weak sentiment toward the asset. The decrease in the MCA reflects the loss of confidence among these long-term holders, adding further pressure to Ethena’s price. When LTHs exit their positions, it often signals a broader market reluctance to hold, which can keep the…
Filed under: News - @ March 6, 2025 2:31 pm