Ethena Faces Pressure as 266 Million ENA Tokens Unlock
Ethena is bracing itself for a potential wave of sell pressure as 266 million ENA tokens are set to unlock in two phases, with the first $34 million unlock happening today.
According to CryptoRank.io, Ethena (ENA) will see 94.19 million ENA tokens being unlocked today, valued at $33.87 million. This amounts to 0.63% of the total supply and 1.79% of the market cap. Additionally, another 171.85 million tokens are scheduled to be unlocked on April 5.
The upcoming token unlocks come at a time when ENA is trading at $0.35, experiencing a 17% decrease over the past week. This decline follows World Liberty Financial’s sale of 184,000 ENA tokens worth $69,000 on March 25. Prior to this, on March 5, Ethena unlocked a substantial 2.07 billion ENA tokens, valued at $728 million, accounting for 13.9% of the total supply.
Looking at the price chart, ENA has been on a downward trend since the beginning of the year, trading below the 21-day Exponential Moving Average. While there was an attempt to break above the 21-day EMA in late March, the price failed to sustain the momentum.
The Relative Strength Index (RSI) currently stands at 44.26, below the neutral 50 level. Although the RSI moving average is at 46.88, indicating a slight recovery attempt, it remains weak.
Noted technical analyst Ali Martinez suggests that if ENA maintains support around $0.342, it could aim for a price target of $0.473. However, a failure to hold this support level could see the price drop to the $0.30 – $0.32 range, where the price consolidated before a previous bullish rally.