Major Ethena (ENA) holders have started liquidating positions. The price of Ethena (ENA) dropped rapidly following earlier significant projects by the MakerDAO.
The sale of 2.04 million ENA from one of ENA’s most influential figures, a founder previously associated with MakerDAO, has caused the price of ENA to drop 1.95% in the past 24 hours. Investors have been worried about this significant sale, and the market is becoming volatile.
ENA’s market suddenly spurted activity when a figure resembling MakerDAO’s founder sold a big bag of 2.04 million Ethena tokens. The action influenced ENA’s market price. It increased 24h volume by 56x even as the overall market cap fell 2.56%.
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On Monday, ENA’s market cap was just under $1.03 billion, demonstrating the immediate effects of the sell-off.
Rune Christensen, founder of Sky (fka MakerDAO), sold all 2.04M $ENA for 744K $USDC immediately after claiming them from @ethena_labs 9 hours ago.
Notably, he also redeemed all 22.08M $USDe back into $USDT 7 days ago. He was previously among the top holders of $USDe.
Follow… pic.twitter.com/xCr6WuH6pl
— Spot On Chain (@spotonchain) October 23, 2024
Impact on Trading Volume and Market Cap
ENA’s trading volume spiked with the sale, reaching $75.01 million for the last day, 22.85% higher than yesterday. Though ENA’s trade volumes have surged, the market sentiment has been bearish, as the price and market cap of ENA have fallen.
It is going down to $0.3757, a huge uncertainty for current holders and would-be investors. Technical analysis shows that Ethena’s (ENA) price movement trends are bearish on a short-term scale.
On the 4-hour trading chart, ENA appears to be in a downward channel. It is looking for early support breakdown levels of resistance of around $0.38.
The notably striped ADX (Average Directional Index) at 17.07 suggests the weak trend strength, implying it will be tough to bounce back from the current bottoms shortly.
4-hour ENA/USDT Chart | Source: TradingView
The chart also mentions several key price points where ENA failed to maintain upward momentum. That indicates ENA’s bearish outlook.
Prices rallied to $0.3856, where the resistance was very strong, resulting in further slumps. The current downward trend continues, but market analysts may consider this a consolidation zone if the price stabilizes.
This recent downturn in Ethena token’s price might bring mixed reactions from the cryptocurrency community. While some investors might see this as a temporary setback and a potential buying opportunity, others might be more cautious, considering the significant sell-off by a primary holder a red flag.
The market’s response over the next few days will be crucial in determining whether ENA can regain its lost momentum or continue to face downward pressure.
The actions of major stakeholders, like the former MakerDAO founder, have massive ramifications on token prices and stability, particularly ENA. The next few days are key as they decide whether or not ENA regains from this slump or if downward pressure continues.