Galaxy Digital Offloads ENA Tokens, Sparking Market Volatility

Galaxy Digital, a prominent cryptocurrency investment firm, has sold 10.85 million ENA tokens at an average price of $1.144, securing a profit of $2.37 million. This move is part of a larger selloff, with the firm depositing 4.46 million ENA tokens ($4.92 million) to Binance just nine hours ago. Over the past 29 hours, Galaxy Digital has offloaded a total of 10.85 million ENA tokens ($12.4 million).

Whales Accumulate ENA Tokens on Exchanges

Galaxy Digital is not the only whale to transfer ENA tokens to exchanges. In the past two days, three major whales, including Galaxy Digital, have transferred 25.81 million ENA tokens ($30.43 million) to Binance and Bybit. This significant influx of tokens has contributed to the current market volatility.

ENA Price and Market Analysis

ENA’s price has dropped significantly, trading at $0.9951, with a market cap of $3.01 billion. This represents a 13.71% decline in the past day. Trading volume has surged 30.44% in the last 24 hours, reaching $613.15 million, with a volume-to-market cap ratio of 20.12%. ENA’s total value locked (TVL) stands at $5.89 billion, resulting in a market cap-to-TVL ratio of 0.5162.

Technical Analysis: Bearish Trends and Resistance Levels

From a technical perspective, ENA faces resistance at $1.09 and $1.21. Immediate support lies at $0.99, with potential downside risks toward $0.95 if breached. The 4-hour chart indicates a bearish trend, as the 9-day moving average has crossed below the 21-day moving average. This crossover suggests continued downward pressure on the price.

The Relative Strength Index (RSI) is currently at 46.27, signaling a neutral market. However, a recent dip to 29 suggests the token was briefly oversold, which could attract buyers. The RSI’s downward trend, coupled with a declining moving average, points to weakening momentum.

The Bollinger Bands on the chart have widened, reflecting increased volatility in recent trading sessions. The price has moved below the middle band, confirming the bearish sentiment. If ENA fails to reclaim its $1.09 resistance, a move toward the lower Bollinger Band near $0.95 is likely.

The Moving Average Convergence Divergence (MACD) indicator shows bearish momentum, with the MACD line trending below the signal line. The histogram reflects growing negative divergence, reinforcing the selling pressure.

Conclusion

Galaxy Digital’s significant selloff of ENA tokens has contributed to the current market volatility. With a bearish trend and weakening momentum, ENA’s price may continue to decline. However, a successful retest of the $1.09 resistance could indicate a reversal. As the market continues to evolve, it is essential to monitor ENA’s price and technical indicators for potential buying or selling opportunities.

Source: Thenewscrypto.com

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