Ethena Team Intervenes with $12 Million Investment, But ENA Continues to Decline

The Ethena team has made a significant investment of $12 million in the form of ENA tokens, yet the price has continued to decline. After rising from $0.19 to $0.26, ENA faced resistance and has since fallen for two consecutive days, hitting a low of $0.22 before experiencing a slight rebound. Currently, ENA is trading at $0.23, reflecting a daily decrease of 7.27%, illustrating the intense selling pressure on the token.

Key Takeaways

Ethena's team has accumulated $12 million in ENA to bolster its market performance.
ENA's recent selling has resulted in a decline to $0.23, following a peak at $0.26.
The team's strategic purchases have come after prior selling activity, indicating a renewed commitment to the token.
Despite these efforts, market responses from retail investors have been overwhelmingly negative, leading to increased selling pressure.
Future price recovery for ENA may depend on the team's ability to stabilize the market.

Ethena team steps in with $12 mln buy - But ENA keeps sliding

Team's Investment in ENA

According to Arkham reports, the ENA team wallet purchased 25 million ENA valued at $5.93 million from Bybit. This acquisition was complemented by another purchase made a day earlier, where they withdrew 25 million ENA worth $6.25 million. In total, they secured 50 million ENA for about $12.18 million within just 24 hours. Notably, this activity signals a return to their previous investment pattern after having sold a considerable amount of tokens a week earlier.

Ethena wallet

Source: Arkham

Last week, the team had deposited 40 million ENA valued at $8.16 million. Following their recent purchases, the total holdings in their wallet rose to 789.8 million ENA, amounting to $185 million. This buying activity is part of a broader trend, as major investors increased their holdings after ENA's price drop. Over the last 24 hours, significant holders accumulated 171.65 million ENA while only selling 83.29 million, resulting in a positive Holder’s Balance Change of 88.36 million ENA—an indication of aggressive accumulation in the market.

Ethena holders transfers and balance

Source: Nansen

With both the team and top holders actively accumulating ENA, there is a strong belief in the potential for market recovery.

Reasons Behind ENA's Decline

Despite the ENA team's efforts, the token has faced significant selling pressure, primarily from retail investors seeking to cash out. Data from Coinalyze indicates that on January 8th, selling volume reached 22.59 million, outpacing buying volume of 15.75 million.

ENA buy sell volume

Source: Coinalyze

This resulted in a negative Buy Sell Delta of -6.85 million, showcasing significant selling activity, which has historically led to downward price movements.

Can the Team's Purchases Stabilize ENA?

Currently, the Ethena team's attempt to stabilize ENA's price through their recent purchases has not succeeded. In fact, the token has dipped below the EMA50, indicating a strengthening bearish trend. Additionally, the Stochastic Momentum Index (SMI) has crossed into a bearish territory, now sitting at 42.

ENA EMA & SMI

Source: TradingView

This downward trend suggests that bearish momentum is growing stronger, driven primarily by selling pressure, leaving recent team interventions insufficient to reverse the trend. Therefore, the market outlook indicates potential further losses for ENA, with the possibility of dropping to the support level of $0.20. Conversely, if the team's efforts yield positive results, ENA could potentially recover above EMA50 at $0.25 and aim for $0.30. For this optimistic scenario to materialize, the altcoin must maintain a price above $0.23.