Ethena (ENA) has been experiencing a sharp decline in its market performance, with the token’s price sliding below the critical $0.30 mark. As of April 6, 2025, ENA traded at $0.2929, marking an 8.13% daily drop. The price slump comes alongside a significant decrease in trading volume, which has dropped by 41.31%, signaling weakening market interest and selling pressure. The total market capitalization of Ethena has also taken a hit, falling by 8.24%, reaching $1.62 billion.

Despite these downturns, Ethena’s total value locked (TVL) remains strong, holding steady at $5.25 billion, which has helped maintain a moderate market cap-to-TVL ratio of 0.3117. The circulating supply of Ethena stands at 5.55 billion ENA out of a total supply of 15 billion, with its fully diluted valuation estimated at $4.39 billion. However, the overall bearish momentum suggests that ENA could face more downward pressure unless a market reversal occurs.

Bearish Technical Indicators

The technical chart for ENA shows a clear bearish trend. As ENA’s price fell below $0.30, this level has now turned into immediate resistance. The latest four-hour chart shows the accelerating bearish momentum, with ENA struggling to break back above the $0.30 mark. If ENA is unable to reclaim this level soon, it risks falling to the next support zone near $0.285. If this support level is breached, ENA could further dip toward the $0.270 region, increasing the potential for further losses.

The Relative Strength Index (RSI) currently stands at 33.46, which indicates oversold conditions. However, its 14-period average is slightly higher at 41.05, suggesting that the downward pressure is still ongoing and that the selling force is not yet exhausted. For a reversal to gain momentum, the RSI would need to rebound above 40. Until then, there’s a significant risk that ENA may continue its downtrend, as the market sentiment remains largely negative.

In addition, the Chaikin Money Flow (CMF) indicator is at -0.06, showing that capital continues to exit the market. This negative CMF reading further supports the broader bearish trend and suggests that there is less buying activity and more selling pressure. Without a change in this dynamic, ENA may struggle to break out of its current downtrend.

Moving Averages Confirm Bearish Bias

Moving averages (MA) also suggest that Ethena faces technical challenges in the short term. The 9-period exponential moving average (EMA) recently crossed below the 21-period EMA, indicating a bearish crossover. This cross suggests that sellers are in control of the market for now. There has been no indication of a bullish crossover, which could signal the beginning of a price recovery.

For Ethena to gain back positive momentum, the market will need to see a shift in the short-term moving averages. Specifically, a bullish crossover on the moving averages and a rebound in trading volume would be necessary for ENA to break through the $0.30 resistance and target the next key level at $0.325. Until such technical indicators align, caution is advised for market participants.

Outlook and Market Sentiment

Despite the strong TVL and the current oversold conditions, Ethena’s price is under significant pressure from the broader bearish market sentiment. The absence of a clear bullish reversal and the ongoing selling trend suggests that ENA’s price may continue to struggle unless a significant shift in market conditions takes place.

In the short term, market participants should closely monitor key technical indicators such as the RSI, CMF, and volume inflows to determine if a potential rebound could occur. If ENA fails to reclaim $0.30 and break the $0.325 resistance, the bearish momentum is likely to persist. Therefore, caution remains the best approach for those looking to invest or trade ENA in the current market environment.