The price of ENA fell by 10% on Friday, as Ethena whales also began to sell off heavily, raising concerns among investors.
Ethena has recently sparked a wave of concern among cryptocurrency market participants, as its actions have gradually weakened in the face of significant whale sell-offs. On-chain data from Thursday showed that whales sold millions of tokens, exacerbating investor concerns as the price of ENA plummeted by 10%. Therefore, following the recent volatility in the market, cryptocurrency enthusiasts are now closely monitoring the future price trend of this token.
Is the price of ENA at risk? The large sell-off by whales raises concerns.
According to Lookonchain data, as of December 26, some whales withdrew 3.36 million ENA (worth 3.17 million USD) and sold them to cryptocurrency exchange giant Binance. This massive sell-off occurred during a recent market downturn, highlighting signs of panic selling. Notably, according to Etherscan data, these whale addresses have been identified as 0x886b.. and 0xbB22..
Overall, the massive sell-off during the recent market downturn indicates that traders are exhibiting a low-risk appetite, selling off to mitigate losses. Meanwhile, another event has exacerbated concerns about the market position of this asset.
Arthur Hayes of BitMEX recently sent 7 million ENA to Binance after unstaking. As the cryptocurrency is currently experiencing a crash, this exchange sell-off further raised market concerns.
How is Ethena performing?
As of the time of writing, the price of ENA has rebounded and is currently trading at 0.9523 USD. Its 24-hour low and high are 0.9219 USD and 1.04 USD, respectively. Notably, the current downward trajectory aligns with the broader trends in the cryptocurrency market and the aforementioned Ethena whale sell-off.
Nevertheless, it is worth noting that the monthly chart for the token shows an increase of up to 48%. This upward trend reflects a surge in market optimism, as the cryptocurrency team recently announced a partnership with Trump's WLFI. Hence, a governance proposal has been submitted to integrate Ethena's sUSDe stablecoin as a core collateral asset for WLFI's upcoming Aave-based lending platform.
Given the expected market recovery and the partnership with WLFI, the price of ENA could rise significantly. With Trump back in the White House, the general sentiment in the market regarding the industry's future is bullish, and Ethena is well-positioned to capitalize on this opportunity.
In simple terms
The Esina whales are dumping a large amount, raising market concerns.
Due to the large sell-off by whales, the price of ENA plummeted by 10%.
Nevertheless, following the recent collaboration, the overall market remains optimistic about the future trend of this asset.