The price of ENA, the native coin that powers the Ethereum-based synthetic dollar protocol, Ethena, has cratered by almost 30% in the past seven days.
The steady drop in the altcoin’s price during that period has prompted its largest whale address to offload some of its holdings to prevent further losses.
Ethena’s Largest Staker Pulls Out
As of this writing, ENA trades at $0.72. During the early trading hours of today, the altcoin’s price plunged to $0.68, its lowest level since May 20.
The double-digit decline in ENA’s value recorded over a seven-day period has caused its largest staker to send a significant amount of its holdings to Binance in the past 24 hours for onward sales.
On-chain data showed that through a series of deposits on June 11 between 20:39 and 20:46 Greenwich Mean Time (GMT), the whale address deposited 11.016 million ENA tokens to Binance.
In the past six hours, this whale has moved 19.36 million ENA tokens to Binance, valued at approximately $14.1 million, with an average token price of $0.72.
Following these sale transactions, this address currently holds 3.88 million ENA, valued at $3 million at current prices. This indicates that the whale now sits on an estimated total loss of $13.07 million.
Read More: What Is Ethena Protocol and its USDe Synthetic Dollar?
Interestingly, despite ENA’s price decline, the total value of assets locked (TVL) on the protocol has continued to climb. At $3.44 billion, Ethena’s TVL is at its all-time high.
This steady uptick in Ethena’s TVL hints at the possibility of an ENA price rebound, pseudonymous crypto analyst Route2Fi opined in a post on X.
According to the analyst, ENA’s price is heavily influenced by the popularity of the Ethena Protocol. This is similar to how LUNA’s price rose in 2021 alongside the growth of the Anchor Protocol.
Clarifying that this does not mean that ENA is a Ponzi scheme, the analyst noted that its value rises when its underlying protocol, Ethena, gains traction.
ENA Price Prediction: Rally May Not Occur in the Short-Term
While Route2Fi has opined that ENA’s value might rebound in the short term, an assessment of the token’s key technical indicators suggested this may not be true.
For example, its Relative Strength Index (RSI) rested below the 50-neutral line at 41.08.
This indicator measures overbought or oversold conditions in a market by tracking an asset’s price momentum and changes.
It ranges between 0 and 100, with values above 70 suggesting that the asset is overbought and due for a correction, while values above 30 suggest oversold conditions.
At 41.08, ENA’s RSI suggests a decline in buying pressure and a spike in selling momentum.
If selling pressure continues to dominate, the altcoin’s value might drop under $0.70 to trade at $0.40.
However, if invalidated, and the bulls re-emerge, ENA’s price may trend towards $1.07.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
