- When Amber Group offloads the $10 million ENA, Ethena drops 4% by 4%, putting up bear pressure.
- Future tokens unlock uncertainty in the 266m ENA fuel market.
- The ENA is struggling with a $0.48 resistance, along with a recovery-skeptical analyst.
Ecena prices are under pressure as Amber Group, a leading market maker, deposited ENA tokens worth $10.35 million. The transaction, highlighted by Arkham Intelligence’s on-chain data, promoted bearish sentiment among traders. The sale follows the recent $2.5 million ENA accumulating at an average price of $0.3979. Additionally, Amber Group received an ENA of $7.85 million from its Ethena billing address between April and July 2024.
As Amber Group offloads its $10 million ENA, Ecena is facing market pressure
Market participants are cautious as sudden sales can disrupt supply dynamics. While some speculate that increased liquidity could attract new investors, many expect further price drops in the short term. Ecena prices have fallen nearly 4% in the last 24 hours, reflecting the impact of Amber Group’s trading. After the token recently faced resistance at $0.48, traders are closely monitoring price levels.
The bearish trend surrounding Ethena has been strengthened with recent unlocking tokens. Cryptorank data revealed that 206 million ENA tokens were unlocked on March 5th, accounting for 13.9% of the total supply. At the beginning of the month, 94.19 million tokens were released, increasing the supply of the market.
More pressure on ENA’s market performance
Future unlocks continue to attract concern among traders. Another 94.19 million tokens will be released on April 2nd, followed by 17,185 million on April 5th. A steady increase in circular supply contributed to price instability as demand struggles to absorb the increase in available tokens. Historically, similar massive unlocking events have led to short-term price drops, which could put more pressure on Ena’s valuation.
At the time of reporting, the price of the Ecena had fallen to $0.3581, trading within $0.3763 from the 24-hour range of $0.3497. Over the past week, ENA has declined by 1%, but the monthly chart shows a decline of 11%. The broader bearish trend coincides with ongoing token unlocking and recent selloffs by Amber Group.
Market analysts are skeptical of Ecena’s short-term recovery. Famous trader Sjuul/AltCryptogems emphasized that the ENA can’t beat the main resistance level of $0.48, further weakening bullish sentiment. If the buyer is unable to hold the current price level, the asset can see continuous downward pressure.
Ecena prices struggle amid increasing supply and resistance levels
Despite current challenges, Ethena Labs continues to advance its ecosystem. The company has achieved a partnership with Securitize, launching Converge, bringing blockchain technology to Defi and tokenized assets. The market will maintain its security prospects as supply uncertainty continues along with recent stock trading losses.
The combination of Amber Group’s massive sell-off and continuous token unlocking puts a lot of pressure on Ecena’s prices. The short-term trajectory of the token remains uncertain as traders carefully look at key resistance levels. Increased liquidity could help long-term adoption, but current market sentiment refers to continued volatility.
