Ethena at a crossroads: Will ENA fall from $0.60 or climb above it?
**Key Takeaways: What’s Impacting the Price of ENA?**
The current valuation of Ethena (ENA) appears weak due to decreasing trading volume, a potential structural shift in price patterns, and spot selling pressure. Despite this, several strong fundamentals underline the token’s resilience, including growing Total Value Locked (TVL), increasing active addresses, and solid yield rewards over the past two months.
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### Market Overview
As we approach the upcoming week, the cryptocurrency market seems poised for a correction, with only a few coins possibly bucking the trend. ENA has declined by about 1.6% in the last 24 hours, while its daily trading volume has taken a significant hit—shrinking by nearly 10 times the scale of the price movement. This dynamic has led to mixed market reactions, with public and institutional investors displaying contrasting views about ENA’s current price, although the underlying fundamentals remain strong.
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### Strong Fundamentals
An analysis of holder metrics from Nansen AI reveals some mixed signals in ENA’s ownership:
– **Smart Money and Public Figures** have increased their holdings by 4.48% and 1.68%, respectively.
– Conversely, **Whales and Exchanges** have reduced their stakes by 3.43% and 17.45%, respectively.
Arca, a notable institutional investor, holds approximately $4.57 million in ENA, representing about 0.05% of the total supply, highlighting their confidence in the token’s future appreciation.
On the institutional side, ENA’s TVL recently hit a new all-time high of $13.88 billion, accompanied by $151 million in daily capital inflow—further confirming strong institutional interest.
Additionally, the number of active addresses has been rising steadily, currently standing at around 32,000. Demand is further supported by attractive yield rewards, with the monthly Annual Percentage Yield (APY) reaching its highest level since March at 0.072%.
Most of these positive fundamentals align with ENA’s price performance over the last two months. The price began to rise around July 9th but has experienced a mostly flat or slightly declining phase from mid-August through September.
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### Why Is ENA’s Price Weak?
Looking at ENA’s daily price chart, a potential double top pattern appears to be forming—a bearish signal that often indicates a trend reversal. For this structure shift to be confirmed, the price would need to break and sustain below the neckline. If the current support holds, this bearish pattern may be invalidated.
The $0.50 level serves as a key support zone in case the price breaks below $0.60.
So, what factors contributed to the recent price decline?
– Since September 11th, trading volume on ENA has been shrinking, signaling reduced market activity.
– Approximately $5.4 million worth of ENA tokens were transferred to centralized exchanges (CEX) for profit-taking, triggering increased selling pressure.
– The Funding Rate remains in negative territory at -0.0046%, indicating that sellers are currently paying buyers, which points to bearish sentiment.
– However, exchange net flows have started to ease, potentially opening the door for bullish inflows if selling pressure diminishes.
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### Conclusion
Despite recent price weakness and volume declines, Ethena’s strong fundamentals—including rising TVL, active addresses, and robust yield rewards—highlight ongoing interest and confidence in the token. Monitoring key support levels and volume trends in the coming days will be crucial to understanding ENA’s next price direction.
https://ambcrypto.com/ethena-at-a-crossroads-will-ena-fall-from-0-60-or-climb-above-it/
