Ethena Labs Reduces ENA’s Exchange Supply – Possibility of $0.30 Retest Looms

With the cryptocurrency market witnessing token buybacks, Ethena Labs has intensified its accumulation of ENA tokens, which has contributed to price stability and encouraged further purchases.

Key Takeaways

Ethena Labs has acquired 25 million ENA tokens, elevating its total to 779.89 million.
The token has witnessed a strong demand from whale investors, reflected in recent buy orders.
ENA has maintained upward momentum and could aim for a $0.30 price target if buying activity continues.
Positive accumulation phases historically correlate with price increases, urging investors to keep an eye on market trends.

Ethena Labs adds 25 million ENA

Ethena Labs has recently purchased an additional 25 million ENA tokens, enhancing their total holdings to nearly 780 million. The presence of "whale" investors continues to bolster demand for ENA, indicating a healthy investment climate for this token. By analyzing market activities, it appears that the ongoing accumulation could lead to significant price movements, including a potential retest of the $0.30 level.

Ethena Labs Acquires 25 Million ENA

As reported by Onchain Lens, Ethena Labs purchased 25 million ENA tokens valued at approximately $7.05 million from the exchange Bybit. Following this acquisition, Ethena Labs now holds 779.89 million ENA, which is valued at $207.7 million.

Ethena labs ena purchase

Additionally, Ethena's StablecoinX Inc. has a substantial holding of 2.146 billion ENA, worth around $582.35 million, with floating profits of $57.8 million. This accumulation reflects the team's confidence in the token, while also reducing the available exchange supply, potentially strengthening the price when demand rises.

Whale Investors Continue to Buy ENA

Beyond Ethena Labs, whale investors have shown persistent interest in ENA. Data from CryptoQuant's Spot Average Order Size revealed multiple large orders from these investors over the past week.

Ethena Spot Average Order Size

These significant orders reveal that whales are actively accumulating ENA rather than liquidating it. Furthermore, Ethena's Top Holders Balance Change has remained positive for five consecutive days, indicating that major holders are purchasing more DEANA tokens than they are selling.

Ethena top holders

In this timeframe, Top Holders have collectively bought 774.81 million ENA tokens, suggesting a sustained demand trend. CoinGlass data regarding exchange activity aligns with this as ENA's Spot Netflow recorded minimal positive activity over the last ten days.

Ethena Netflow

As of now, Spot Netflow sits at -$444.6k, improving from -$2.23 million the previous day, indicating ongoing outflows. Historically, such net outflows have accompanied accumulation phases that subsequently led to price strength.

Impact on ENA’s Price

The ongoing accumulation from both whale investors and Ethena Labs has had a beneficial effect on ENA’s price. The token recently held steady at the critical support level of $0.255, then surged to a local peak of $0.28 before experiencing a minor pullback. Currently, ENA is trading at $0.27, reflecting an increase of 8.69% in the daily charts, showcasing a strong bullish trend.

ENA RVGI

Additionally, the altcoin's Relative Vigor Index made a bullish crossover to -0.0096, indicating that bullish momentum is gradually gaining. Furthermore, Parabolic SAR support is positioned around $0.2423, becoming the next key downside level.

If the buying momentum persists, ENA might retest the $0.30 level. On the other hand, any slowdown could lead the price to gravitate toward the Parabolic SAR support.

Conclusion

As Ethena Labs and whale investors continue to accumulate ENA, the token seems poised for notable movements in the market. Investors should remain vigilant about ongoing trends, as this could present opportunities or shifts in strategy.