ENA Whale Activity Surges: Can It Break the $0.50 Resistance?

Massive ENA Whale Move Signals Potential Market Shift Amid Price Rebound

ENA Whale Activity Surges – A newly created multisig wallet has gathered an impressive 14.57 million Ethena (ENA) tokens, valued at approximately $4.41 million, transferring these assets primarily from major exchanges Binance and Bybit. This strategic consolidation signals increasing whale interest amid a period of cautious market sentiment.

Long-Term Custody Signals Amid Recent Price Rebound

The tokens were sent to a Gnosis Safe, indicating a preference for long-term custody rather than short-term trading. This accumulation follows ENA’s recent 11.3% price rebound, pushing the token to $0.3379. However, the influx into a fresh wallet raises questions about whether this signals a reversal of the ongoing downtrend or simply an isolated whale move.

Underwater Holders Could Cap ENA’s Rally Potential

Despite recent whale accumulation, the majority of ENA holders remain underwater. Approximately 93.88% of investors are at a loss, with only 0.39% currently in profit and 5.73% breaking even. With the current price near $0.3379, many holders are trapped within the $0.35 to $0.50 range, creating a bearish supply overhang that could limit recovery momentum if frustrated investors decide to sell during short-term price spikes.

Volatile Whale Netflows Signal Mixed Sentiment

Whale netflows surged an explosive 10,659% in May, indicating strong accumulation. However, the last seven days saw a sharp reversal with a -1982% drop, highlighting volatile whale behavior and uncertain confidence in ENA’s price trajectory. While the 90-day netflow remains positive at +430%, this recent decline calls for caution as continued whale accumulation is uncertain.

Derivatives Market Activity Signals Increased Speculation and Risk

The derivatives market for ENA shows significant growth, with trading volume up 110.53% to $900.84 million and Open Interest rising 10.66% to $430 million. This suggests heightened trader engagement, particularly following the recent price bounce. Liquidation data reveals $245.23K in shorts liquidated compared to $136.35K in longs, indicating that short squeezes partly fueled the price recovery. Binance and Bybit recorded the highest liquidation volumes, but the liquidation spread does not confirm strong bullish conviction—more so, opportunistic trading amid volatility.

Key Technical Support Near $0.25 Remains Crucial for Sustained Recovery

Technically, ENA remains within its consolidation range, bouncing from a crucial support level near $0.25. The stochastic RSI is approaching oversold territory, signaling potential for further upward momentum. However, resistance remains strong below $0.50, and for ENA to break out of its long-term downtrend, it must hold the $0.25 support and reclaim key zones with increased buying volume and investor conviction.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.