Ethena’s Short-Lived Rally: Token Unlock Wipes Out Gains

Ethena's short-lived rally has left investors wondering whether the price will rebound. For more information on this topic, you can visit CDS.

Published by Begüm DİLBAZ

7 November 2025, 19:35 published Updated 7 November 2025, 19:35

Ethena’s Short-Lived Rally: Can It Recover?

CoinMarketCap statistics show that Ethena has decreased by 20.51% in the last seven days. As of this writing, the altcoin’s market capitalization is $2.3 billion, having traded at $0.3201 on the previous day. However, on November 6, Ethena’s pricing slightly increased. The rebound followed the announcement of the token’s listing by the American trading platform Robinhood. But it soon resumed its downward path. Prices were still under pressure after the 171.88 million token unlock, which was valued at roughly $54.88 million just a day ago.

Ethena’s Token Unlock Wave Sparks Fears of More Price Declines

Interestingly, on November 2, there was another $15.7 million unlock immediately following this one. These kinds of token unlocks increase the number of tokens in circulation and decrease scarcity. Prices are frequently impacted by them, particularly when market activity is generally low. Following the most recent unlock, 7.42 billion tokens are currently in use. Early investors and members of the Ethena team still own about 70% of this supply. As a result, investors are probably going to continue to be wary of making a profit.

Ethena Faces Bearish Momentum Inside Declining Channel

Since September 9, the price of Ethena has largely been declining and is still trading inside what looks to be a declining parallel channel. A parallel channel in technical analysis is a pattern that indicates persistent bearish momentum as the price oscillates between two downward-sloping trendlines. Therefore, as long as the price follows this pattern, it will probably keep declining.

As the Supertrend indicator rose over the price line, it flashed red, which is a clear indication that bearish sentiment is intensifying. More significantly, it seems that the 50-day SMA is prepared to move below the 200-day SMA. This pattern, sometimes referred to as a “death cross,” is historically bearish and frequently indicates more significant losses.