Ethena’s price fell for three days in a row as exchange balances continued to rise and whales sold their tokens.
Ethena token (ENA) fell to $0.95, falling below the psychologically important $1 level for the first time since December 20.
The ongoing collapse is caused by risk aversion in the crypto industry, which caused Bitcoin (BTC) and other prices to fall. below.
This also happened as online data showed that whales were selling their tokens. The largest transaction occurred when the whale sent 11.6 million ENA tokens worth $11 million to Binance, the largest cryptocurrency exchange. In another transaction, a trader moved $10.7 million worth of ENA tokens to Binance.
On Thursday, December 26th, Ethena Whales dumped $30 million worth of tokens. These sales came a week after Arthur Hayes, founder of Bitmex and previous investor, sold some of his ENA tokens. According to Nansen, Hayes now owns 18,616 coins worth $17,458.
Ethena’s price also fell as the token continued to rise on exchanges, a popular bearish view. These tokens have increased by 5.82% over the past seven days to exceed 730.27 million. Total supply on exchanges increased to 4.87%, up 0.27% a week ago.
Meanwhile, inflows into Ethena’s USDe stablecoin have stalled. The coin has a market capitalization of $6 billion, where it has been for the past few days, a sign of sluggish demand.
Ethena price analysis
Technical data suggests Ethena may be in for a further move lower as it has formed a head and shoulders pattern on the four-hour chart. This pattern consists of a neckline at $0.8552, two shoulders and a head. In most periods, this pattern results in strong downward momentum as it moves below the neckline.
Etena also moved to the 38.2% Fibonacci retracement level and moved below its 50-period moving average. It also fell below the strong Murray Math Lines reversal level.
Thus, the token is likely to continue falling, with the nearest target being the H&S neckline at $0.8552. A fall below this level would indicate further declines, possibly into the extremely oversold $0.5860 level.
Disclosure: This article does not constitute investment advice. The content and materials provided on this page are for educational purposes only.
