Can Ethena Maintain Its $0.20 Support After 101M ENA Transfers to Exchanges?

Ethena (ENA) is showing signs of recovery after hitting a low of $0.191, successfully holding the $0.20 support level. Despite some upward movement to $0.21, recent large deposits to exchanges by Ethena Labs have raised concerns about the altcoin's short-term prospects and potential selling pressure. With whale activity still high, the market is at a crossroads regarding ENA's future direction.

Key Takeaways

Ethena (ENA) managed to hold the $0.20 support after a low of $0.191.
It is currently trading at $0.2127, showing a daily increase of 4.33%.
Ethena Labs has deposited a significant amount of ENA—over 101 million tokens—across several exchanges.
Whale activity is pronounced, with large buyers dominating the market.
The altcoin's overall momentum appears bearish, raising concerns about future price stability.

Ethena Labs Moves 110 Million ENA Worth $20mln to Exchanges

Recent Market Developments

Ethena (ENA) seems to have stabilized after dipping to $0.191. The altcoin has held its ground at the $0.20 support level, even climbing to a recent high of $0.21. As of the latest figures, ENA is trading at $0.2127, reflecting a daily increase of 4.33%. However, it has seen a 15% decrease over the past week.

In the midst of market volatility, Ethena Labs is increasing its deposits to exchanges, which could threaten the potential for a price recovery.

Surge in Ethena Labs’ Exchange Deposits

Data from on-chain monitors reveals that Ethena Labs has executed multiple ENA deposits to various exchanges. Notably, they transferred two substantial amounts to Coinbase. In total, the labs deposited 50.13 million ENA, equivalent to $12.4 million, through two separate transactions: the first transferring 39.53 million ENA and the second involving 20.6 million ENA.

Ethena deposit
Source: Onchainschool

Additionally, Onchain Lens highlighted further deposits where Ethena Labs sent 18.36 million ENA, worth around $3.75 million, to Bybit, and another 23.3 million ENA valued at $4.74 million to FalconX. In total, 101.79 million ENA, valued at roughly $20.9 million, have been moved to exchanges. Such significant moves often indicate a plan to sell or distribute tokens, which could pose extra pressure on an already fragile market.

Whale Activity Signals Buying Interest

Interestingly, despite the broader market decline, the activity among Ethena whales remains robust. Spot Average Order Size data from CryptoQuant indicates that large orders from whales have been consistently observed since mid-October.

Ena spot average order size
Source: CryptoQuant

Typically, a high number of whale orders signifies increased trading activity, whether buying or selling. In this case, whales have been more active on the buying side. The Spot Taker CVD has remained in the green for 25 consecutive days, indicating that buyer activity has been dominant in the market.

Ethena spot taker cvd
Source: CryptoQuant

Recently, Ethena's Buy-Sell Delta recorded a favorable situation, with 110.49 million in Buy Volume versus 95 million in Sell Volume.

Ethena buy sell volume
Source: Coinalyze

This resulted in a positive Buy Delta of 15 million, indicating strong accumulation that actively countered the selling pressure.

Assessing Recovery Potential

While Ethena has seen some daily chart recovery, its overall structure remains bearish. At the time of writing, the Directional Movement Index (DMI) for ENA had dropped to 11.7, with the -DI above it at 24, indicating continued downward momentum. Furthermore, the Stochastic Momentum Index (SMI) remains in the negative territory, suggesting that the downtrend is strong.

ENA stoch & DMI
Source: TradingView

Although demand has supported ENA in the short term, its long-term outlook appears weak. If Ethena Labs sells the recent deposits, this could further strain the price, possibly leading it to breach the $0.20 support level again and fall toward $0.18. On the other hand, if buyers sustain their momentum, there may be potential for the altcoin to rally toward a target of $0.24.

Conclusion

The future of Ethena (ENA) is uncertain as it confronts pressures from substantial exchange deposits and broader market conditions. Investors and traders should keep a close eye on whale activities and support levels in the upcoming days to better gauge potential price movements.