🌎 Ethena Token Plunges Below $1 Amid Whale Selloffs

Ethena Token Sees Price Retreat Amid Rising Exchange Balances and Whale Selloffs

The Ethena token has experienced a significant price decline over the past three days, with its value dropping below the psychologically important $1 level for the first time since December 20. The token’s price currently stands at $0.95, representing a decline of 8.52%.

The downturn in Ethena’s price is largely attributed to the prevailing risk-off sentiment in the cryptocurrency market, which has led to a decline in prices across the board, including Bitcoin. On-chain data has revealed that whales have been actively selling their Ethena tokens, contributing to the price decline.

Whale Selloffs and Rising Exchange Balances

One of the largest transactions involved a whale sending 11.6 million ENA tokens, valued at $11 million, to Binance, a major cryptocurrency exchange. Another significant transaction saw a trader move ENA tokens worth $10.7 million to the same exchange. These sales, totaling $30 million, occurred just a week after Arthur Hayes, the founder of Bitmex, sold some of his ENA tokens. According to Nansen, Hayes now owns 18,616 coins, valued at $17,458.

The increasing number of tokens on exchanges has also contributed to the bearish sentiment surrounding Ethena. Over the past seven days, the total supply of tokens on exchanges has risen by 5.82% to over 730.27 million, with the total supply moving to 4.87%, up by 0.27% from the previous week.

Ethena Price Analysis

From a technical perspective, Ethena’s price chart suggests that the token may experience further downward momentum. The formation of a head and shoulders pattern on the four-hour chart, comprising a neckline, two shoulders, and a head, often leads to a strong downward trend when the price moves below the neckline.

Ethena has also slipped below the 50-period moving average and fallen below the strong pivot reverse level of the Murrey Math Lines. Additionally, the token has moved to the 38.2% Fibonacci Retracement level. Based on these technical indicators, the token is likely to continue its downward trend, with the immediate target being the H&S’s neckline at $0.8552. A drop below this level could potentially lead to further downside, potentially reaching the extremely oversold level of $0.5860.

For the latest updates on the cryptocurrency market, including Ethena and other tokens, check out Global Crypto News for more information.