Ethena braces for sell pressure as 266 million ENA tokens unlock, potentially affecting the token's price - IcoHolder.
Ethena is bracing for a significant wave of sell pressure as 266 million ENA tokens are set to unlock in two phases. The first of these phases, starting today, will release 94.19 million ENA tokens, valued at approximately $33.87 million. This release accounts for 0.63% of the total token supply and 1.79% of the current market capitalization. The second phase of this unlock, totaling 171.85 million tokens, is scheduled for April 5.
This massive unlocking comes at a time when ENA's price is already under pressure. The token has seen a 17% drop in value over the past week, currently trading at $0.35. This downturn follows a recent sell-off by World Liberty Financial, which dumped 184,000 ENA tokens worth $69,000 on March 25. Earlier, on March 5, Ethena unlocked a large portion of its total supply, with 2.07 billion ENA tokens worth $728 million becoming available—representing 13.9% of the total supply.
Despite these challenges, there are some signs of potential stabilization. The price of ENA has been in a downtrend since the beginning of the year, trading below the 21-day Exponential Moving Average (EMA). There was a brief attempt at a breakout above this level in late March, but the price was unable to maintain its position. Currently, the Relative Strength Index (RSI) stands at 44.26, below the neutral 50 level, but the RSI moving average shows some effort at recovery, indicating a weak upward momentum.
Technical analysis suggests that if ENA can hold its support level around $0.342, there is potential for a price rebound, possibly targeting the 21-day EMA at $0.3817. However, if this support fails, the price could dip further, potentially reaching $0.30 to $0.32, a range where ENA had previously consolidated before a significant bullish rally. The coming days will be critical in determining whether Ethena’s token unlocks lead to further downward pressure or allow for a recovery in ENA’s value.
