Ethena (ENA) breaks below $1, whales frantically accumulate tokens, where is the dawn of price rebound?
The price of Ethena (ENA) plummeted 28.44% this week, breaking the critical support level of $1, seemingly bringing a considerable shock to the market. Nevertheless, one whale has crazily accumulated 13.65 million ENA tokens worth about $13.42 million in just three days, raising the question: Can the whales prevent further declines and bring a reversal opportunity for Ethena?
Market Analysis: Short-term Volatility, Long-term Bullish?
The price of Ethena has rapidly declined over the past week, sliding from a high of $1.32 to around $0.90 currently, with no signs of stopping the downtrend. This correction occurred during a general adjustment phase in the ETH market, and it is evident that Ethena has not been spared. It is worth noting that the current downtrend has broken through the psychological support level of $1 and the 20-day EMA line, causing market sentiment to become more cautious.
However, the price drop is not entirely bad news. Despite the market undergoing adjustments, the whale group (whale investors) has not exited; instead, in the past 30 days, the holdings between $100,000 and $1 million have increased by 108.67%, and the increase in whale holdings has exceeded $10 million, with a rise of 89.85%. This phenomenon reflects that whales are more willing to accumulate ETHENA at low prices, seemingly confident about a future price rebound.
Whale Actions: Key Factors Supporting Rebound
Although the holdings of retail investors are increasing, especially those in the $1,000 to $10,000 range, which grew by 67%, the most notable actions are from the whales. In just the past three days, a newly created wallet extracted 13.65 million ENA tokens from Binance, worth $13.42 million. This influx of whale funds is evidently laying support for Ethena's future price.
Current market fluctuations are significant, but the continuous accumulation by whales and high-net-worth investors undoubtedly provides some support for Ethena's price.
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