Ethena’s ENA token plunges 7% as massive unlock floods the market
Ethena’s native token, ENA, has faced sharp declines in recent days. The stock market price dropped as low as $0.22 before a slight recovery, with heavy selling pressure pushing it down by over 7% in 24 hours. Market activity suggests both retail traders and large holders have been offloading the token amid broader uncertainty.
The downturn began after ENA hit $0.26 but was quickly rejected, leading to two straight days of losses. On January 8, sellers dominated, with 22.59 million tokens sold compared to just 15.75 million bought. This imbalance worsened as a major unlock of around 170 million ENA flooded the stock market today, raising fears of dilution. Many earlier buyers, caught at higher entry points, likely sold to cut losses or secure profits in a cautious altcoin market still influenced by Bitcoin’s movements.
Technical indicators turned bearish as ENA fell below its 50-day exponential moving average (EMA50), signalling growing downward momentum. The Stochastic Momentum Index (SMI) also confirmed the shift, dropping to 42 after a bearish crossover. Despite the sell-off, the Ethena team attempted to stabilise the price by buying 25 million ENA—worth $5.93 million—from Bybit. Meanwhile, top holders adjusted their positions, increasing their total ENA by 171.65 million while offloading 83.29 million. The team also withdrew 50 million ENA, valued at $12.18 million, within a 24-hour window. These moves suggest a mix of accumulation and redistribution as the project navigates the stock market downturn.
ENA currently trades at $0.23, reflecting a 7.27% daily loss. The combination of increased supply from the token unlock, profit-taking by earlier buyers, and weak market sentiment has kept pressure on the price. The team’s recent purchases and withdrawals indicate efforts to counter the decline, but broader conditions remain challenging for recovery.
