- Ethena drops 4% as Amber Group offloads $10M ENA, adding to bearish pressure.
- Upcoming token unlocks of 266M ENA fuel market uncertainty.
- ENA struggles at $0.48 resistance, with analysts skeptical of recovery.
Ethena’s price remains under pressure as a major market maker, Amber Group, deposited $10.35 million worth of ENA tokens to Binance. This transaction, highlighted by on-chain data from Arkham Intelligence, has fueled bearish sentiment among traders. The selloff follows a recent accumulation of $2.5 million ENA from Binance at an average price of $0.3979. Additionally, Amber Group received $7.85 million worth of ENA from the Ethena Claim address between April and July 2024. The substantial token movement has increased concerns over short-term price volatility.
Ethena Faces Market Pressure as Amber Group Offloads $10 Million ENA
Market participants remain cautious as sudden sell-offs can disrupt supply dynamics. While some speculate that the increased liquidity could attract new investors, many anticipate further price declines in the near term. Ethena’s price has dropped nearly 4% over the past 24 hours, reflecting the impact of Amber Group’s transactions. Traders are closely monitoring price levels after the token recently faced resistance at $0.48.
The bearish trend surrounding Ethena has intensified due to recent and upcoming token unlocks. Data from Cryptorank reveals that on March 5, 2.06 billion ENA tokens were unlocked, representing 13.9% of the total supply. Earlier in the month, 94.19 million tokens were released, increasing the market supply.
More Pressure to ENA’s Market Performance
The upcoming unlocks continue to raise concerns among traders. On April 2, another 94.19 million tokens were set to be released, followed by 171.85 million on April 5. The steady increase in circulating supply has contributed to price instability, as demand struggles to absorb the growing number of available tokens. Historically, similar large unlock events have resulted in short-term price dips, which may further pressure ENA’s valuation.
At the time of reporting, Ethena’s price had dropped to $0.3581, trading within a 24-hour range of $0.3497 to $0.3763. Over the past week, ENA has declined by 1%, while the monthly chart shows an 11% drop. The broader bearish trend aligns with ongoing token unlocks and the recent selloff by Amber Group.
Market analysts remain skeptical about Ethena’s near-term recovery. A well-known trader, Sjuul/AltCryptoGems, highlighted that ENA failed to break past the key resistance level of $0.48, further dampening bullish sentiment. If buyers are unable to hold the current price levels, the asset could see continued downward pressure.
Ethena Price Struggles Amid Growing Supply and Resistance Levels
Despite the current challenges, Ethena Labs continues to advance its ecosystem. The company achieved a partnership with Securitize to launch Converge which brings blockchain technology to DeFi and tokenized assets. The market preserves a guarded outlook because supply uncertainties continue alongside recent shares trading losses.
The combination of Amber Group’s large selloff and continued token unlocks has placed significant pressure on Ethena’s price. With traders closely watching key resistance levels, the token’s near-term trajectory remains uncertain. While increased liquidity could benefit long-term adoption, the current market sentiment points toward continued volatility.
