Cryptocurrency enthusiasts have been closely watching Ethena (ENA) as it navigates turbulent market dynamics. With whale sell-offs looming large and technical indicators suggesting potential upward momentum, traders are left wondering if ENA can cross the coveted $1 mark.
The Whale Activity Conundrum
Recently, large-scale investors, commonly referred to as “whales,” have been selling off substantial portions of ENA. Within the past two weeks, over 34 million ENA (valued at $22.65 million) were transferred to Binance. This includes a recent deposit of 5 million ENA worth $3.81 million. Such significant sell-side activities have amplified supply-side pressure, leaving buyers struggling to stabilize the token’s price.
At the time of writing, ENA’s value stood at $0.7613, reflecting a daily increase of 3.28%. Despite improving sentiment, these whale-driven inflows pose a persistent risk of further distribution—often a signal of bearish momentum.
Technical Trends: A Glimpse of Hope
Despite the bearish undertone, ENA’s daily chart indicates a possible turnaround. A clear cup-and-handle formation is forming, pointing towards potential breakout targets between $1.00 and $1.25. Historically, this pattern aligns with continuation breakouts, provided the bulls can surpass the immediate resistance near $0.85.
At the other end, the strong support zone near $0.65 has been tested multiple times. If this level holds, it could offer a springboard for buyers to regain control. However, a failure to maintain the neckline could stall the bullish momentum.
Market Volume and Liquidation Insights
Spot volume data reveals heightened buying activity, suggesting robust demand—a promising sign for bullish traders. Historically, surges in volume have preceded major price moves, and this time seems no different.
Moreover, liquidation data supports the bullish case, with over $500K worth of short positions erased in the last 24 hours. These forced buy-backs triggered a “short squeeze,” temporarily thickening the buyers’ leverage. If bulls manage to breach the $0.85 resistance, ENA could see a strong rally toward $1.00 and beyond.
Conclusion
Ethena (ENA) is currently at a tipping point, with whale inflows testing the market’s resilience against bullish technical signals. While the persistent sell-off activity by whales creates short-term risks, the prevailing cup-and-handle formation, improving sentiment, and strong market demand could propel ENA toward the $1.00 or $1.25 price targets. Ultimately, investors must stay vigilant as market dynamics unfold.
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