Ethena (ENA), once a promising cryptocurrency, is now under significant pressure as its price continues to drop. After losing the crucial support level of $0.86, the token has slipped to $0.81, leaving many investors worried about its future.
ENA, which had a strong run in late 2024, has faced a series of setbacks in the first weeks of 2025. Since the start of the year, its market capitalization has dropped sharply, going from $3.8 billion to $2.47 billion. The token’s 17% decline over the past week and a 35% monthly drop reflect growing concerns among traders.
One major reason for this decline has been the activity of cryptocurrency whales—large investors who hold significant amounts of ENA. On December 26, 2024, these whales sold off 3.36 million ENA tokens worth $3.17 million on Binance. This caused a sharp 10% drop in ENA’s price, dragging it to $0.92.
Analysts have been closely monitoring ENA’s performance, and many agree that $0.86 is a critical level for the token. Popular cryptocurrency analyst Ali Martinez has warned that failure to regain this support could lead to further price drops, with $0.69 and $0.57 as potential next targets.
Adding to the bearish outlook, technical indicators show heightened volatility. The Bollinger Bands, a tool used to measure price volatility, reveal wide gaps between the upper and lower bands. ENA’s price is currently below the 20-day simple moving average (SMA) and approaching the lower band. If it fails to stabilize, the token could see more downside.
Despite the recent sell-offs, there are signs of optimism. On January 15, a major investor withdrew 1.96 million ENA tokens, valued at $1.63 million, from Binance. This move to self-custody suggests that some whales still believe in ENA’s long-term potential, even as the token struggles in the short term.
Such actions are often seen as a sign of confidence in a cryptocurrency’s future. While the immediate outlook for ENA remains uncertain, these moves could indicate that some investors are preparing for a potential recovery.
Since its discovered in April 2024, Ethena has shown significant growth, reaching a market cap of $3.8 billion earlier this month. However, the token’s current market cap of $2.47 billion places it at 47th among the largest cryptocurrencies.
Additionally, ENA’s 24-hour trading volume has dropped by 27% to $440 million. This decline in activity reflects the cautious mood among traders and may limit the token’s ability to stage a quick recovery.
The future of Ethena largely depends on its ability to reclaim the $0.86 support level. If the token manages to stabilize above this mark, it could restore investor confidence and attract more trading activity. However, failure to do so might lead to further declines, with $0.69 and $0.57 as key levels to watch.
Broader market conditions will also play a significant role. If the overall cryptocurrency market recovers, ENA could benefit from the positive sentiment. Conversely, a continued downturn in the market could put additional pressure on the token.
Ethena’s current struggles highlight the challenges of navigating the volatile cryptocurrency market. While the token has faced significant setbacks, there are signs of hope, including long-term whale confidence and the possibility of technical support holding.
Investors should closely monitor ENA’s price movements and broader market trends. For now, caution remains essential as Ethena attempts to regain its footing.
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