Ethena’s ENA Faces Sell Pressure Amid Massive Unlock & Exchange Transfers

• Ethena unlocked 66% of ENA’s supply, fueling sell-off fears, though its 71% decline may delay immediate selling.
• ENA trades near $0.3747, with key support at $0.3165 and resistance at $0.4140. Volume spikes suggest accumulation at lower levels.
• Ethena’s USDe stablecoin sees institutional growth, with MEXC investing $20M and Bybit boosting liquidity for seamless swaps.

Wu Blockchain reported multiple Ethena multi-signature addresses transferred large ENA holdings to Binance. The transactions included 8.5 million ENA from one address, 17 million from another, and 12.865 million from a third. These movements raised concerns about potential sell pressure in the market.

Massive Unlock and Market Sentiment

Today, Ethena unlocked over 66% of its circulating supply, raising speculation about a potential sell-off. Despite this, ENA has already declined 71% from its last swing high. This could delay immediate selling, as holders may prefer waiting for a price recovery. However, sooner or later, these tokens will likely find buyers driven by FOMO.

ENA/USDT recently traded at $0.3747 after reaching a high of $0.3917 and a low of $0.3600. The price dropped 2.14% in the latest session, continuing its downtrend from late 2024. Resistance levels stand at $0.4140, $0.4600, and $0.6518, while stronger resistance is seen at $0.7641 and $0.8430. 

The 2024 closing price of $0.9092 serves as a critical level. On the downside, support lies between $0.3165 and $0.3400, with additional levels at $0.2555 and $0.2374. The lowest visible support is at $0.1937.

Liquidity and Exchange Integration

Volume indicators reveal increased trading interest near support levels. A recent surge in volume around $0.3400 suggests buyer accumulation. However, resistance limits upward movement, leading to consolidation within key levels. If buyers push ENA above $0.4140, it may reach $0.4600. A breakdown below $0.3165 could send prices towards $0.2555.

Meanwhile, Ethena Labs announced a major integration with Bybit, enhancing USDe’s liquidity. Bybit holds over $3.5 billion in USDT and USDC, making swaps between USDe and stablecoins seamless. This partnership supports deeper liquidity and enhances capital efficiency for traders.

Stablecoin Growth and Institutional Interest

Beyond Bybit, Ethena’s USDe has gained traction in the industry. Last month, MEXC invested $20 million in USDe and $16 million in Ethena Labs. The exchange also launched a $1 million reward pool to boost USDe trading and staking.

Stablecoins are becoming crucial in crypto adoption. USDe’s circulating supply now exceeds $5.4 billion, ranking it as the third-largest stablecoin. With increasing institutional support, Ethena’s ecosystem is expanding rapidly despite ENA’s market challenges.