The cryptocurrency world witnessed a significant move by Ethena as the team behind the ENA altcoin made waves with an extraordinary $12 million token purchase, even as the coin continues to face bearish pressure. This strategic move has raised eyebrows and speculation across the market.
Ethena Team’s Aggressive Accumulation Strategy
In a bold attempt to support their altcoin, Ethena’s team wallet acquired 50 million ENA tokens, valued at $12.18 million, over a 24-hour period. This activity was split between two separate purchases: 25 million ENA bought from Bybit for $5.93 million, followed by another purchase worth $6.25 million the next day. Despite this intensive accumulation, ENA’s price saw little relief, trading downwards to $0.23 and experiencing sharp daily drops of 7.27%.
This accumulation marked a shift back to previous behavior, as a week prior, the wallet had offloaded 40 million ENA tokens worth $8.16 million. However, with this latest purchase, the wallet’s total holdings have increased to approximately 789.8 million ENA, equating to a market valuation of $185 million.
Market Movement: Top Holders Join the Trend
Ethena wasn’t the only participant showing confidence in the altcoin. According to Arkham and Nansen analytics, top holders collectively acquired an additional 171.65 million ENA within the last 24 hours, while offloading just 83.29 million. This created a net accumulation of 88.36 million ENA, pointing to strong conviction among major players that a rebound is imminent.
Historically, significant accumulation by top wallets is often associated with subsequent price recovery as demand overtakes selling pressure. However, retail investors appear to be moving in the opposite direction, with many choosing to cash out amidst speculative uncertainty, further driving ENA’s downward trend.
Selling Pressure and Technical Indicators Signal a Bearish Trend
Despite concerted efforts from accumulation by key players, recent trading volumes indicate a challenging environment for ENA. According to Coinalyze, ENA recorded a sell volume of 22.59 million compared to a buy volume of 15.75 million, signaling seller dominance and further validation for the declining price movement.
From a technical perspective, ENA’s position below the EMA50 indicator reinforces bearish sentiment. Additionally, the Stochastic Momentum Index (SMI) displays a bearish crossover, putting the momentum deeply into bearish territory at 42, further strengthening sellers’ control of the market.
A Potential Path Forward for ENA
If Ethena’s efforts to boost demand take root, there remains potential for positive price movement. For a significant turnaround, ENA must reclaim the EMA50 at around $0.25 and contend with resistance levels reaching up to $0.30. However, current market trends suggest ENA could first test support levels closer to $0.20 before any substantial recovery.
Considering Cryptocurrency Investment Risks
For those considering cryptocurrency investments, the ENA case exemplifies the volatility inherent in altcoins. Whether you’re a seasoned trader or a first-time investor, thorough research and close monitoring of market movements are essential. Tools like the Coinalyze platform and other analytics services can help identify key trends and make informed decisions.
Looking for Reliable Crypto Storage?
If you’re diving deeper into cryptocurrency investments, securing your digital assets is paramount. For trusted and secure storage, consider the Ledger Nano X, a state-of-the-art cryptocurrency hardware wallet designed to protect your holdings from online threats.
Disclaimer: Cryptocurrency trading and investments carry a high level of risk. Always do your own research before investing.
