Bittime – Ethena (ENA) is facing a price drop that worries the future of the project. The price of the ENA token has fallen to a low of $0.7438 on Tuesday, almost half of its high this year. This caused ENA's market capitalization to shrink drastically from $2.1 billion to just $1.16 billion.
"Whale" Disaster and Bearish Technical Indications
ETHENA (ENA) to USDT Analyst By Crispus Nyaga | TradingView
This price drop was apparently triggered by a massive sell-off by holders of large amounts of ENA tokens, resulting in a loss of $2.7 million in a few weeks.
Initially, this “whale” made huge profits when ENA surged to $1.5177 in April. However, the recent price drop forced them to sell tokens at a significant loss, potentially affecting investor confidence.
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Technical Analysis Also Paints a Gloomy Picture
ENA has consistently fallen below the 25-day Exponential Moving Average (EMA) on the 4-hour chart, indicating the dominance of the bearish trend. In addition, a bearish "head and shoulders" pattern emerged, indicating continued downward pressure. A break below the crucial support level of $0.7371 could further strengthen the decline, potentially towards the $0.700 target.
Stagnant TVL and USDe Concerns
Ethena's problems are not limited to token price. Data shows that demand for ENA and the network's stablecoin, USDe, has stagnated. Ethena's Total Value Locked (TVL) has remained stagnant at around 785,720 ETH (approximately $1.08 billion) since April, marking a significant shift from its previous upward trend.
USDe, which is marketed as the fifth largest stablecoin, has been compared to the well-known TerraUSD (UST) for its algorithmic nature and high yield (over 15.9%). UST's collapse in May 2022 raises questions about the sustainability of such a model.
Case of TerraUSD (UST) Looming (USDe) USD ethena?
Neither USDe nor UST have fiat currency backing, instead relying on staking assets and hedged derivatives to maintain their prices.
The potential for regulation increasingly threatens Ethena
The Lummis-Gillibrand bill proposed in the US Senate could lead to a ban on algorithmic stablecoins, casting a shadow over the future of USDe.
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Athena's barrier
Although Ethena's initial goal was to provide substantial returns to investors, the current situation raises critical questions about its long-term viability. Declining token prices, stagnant network growth, and regulatory uncertainty paint a challenging picture for Ethena going forward.
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How to Buy Ethena (ENA) on Bittime
You can buy and sell Ethena (ENA) in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
Ethena (ENA) is available on Bittime with the market pair ENA/IDR . To be able to buy ENA IDR at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Learn the complete guide on how to buy Ethena (ENA) on Bittime .
Monitor price chart movements for Ethena (ENA) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Read Also
Ethena (ENA) Pump this Week, What is the Cause?
ENA Continues Down to 35%, Is ENA's Heyday Over?
USDe: Ethena Stablecoin with Impressive Growth, Is It Safe?
DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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