- Ethena’s synthetic stablecoin USDe held up well despite market conditions.
- ENA investors should be wary of further losses.
Ethena [ENA] was down 6.5% in the past 24 hours and its daily trading volume had been slashed nearly in half. The losses on the 3rd of February saw some bidding, but the drop in volume indicated a lack of market conviction.
The bearish signs do not end there. The token unlocks in the coming months would likely add to the selling pressure already on ENA. Close to 8% of the total supply of ENA is still locked, which was bad news for investors.
The synthetic stablecoin of ENA, USDe, has maintained its peg despite the recent volatility and its market cap pushed beyond $6 billion. This was encouraging for the protocol as a whole.
The Ethena price action shows…
Source: ENA/USDT on TradingView
The market structure was firmly bearish due to the series of lower highs and lower lows in the past three weeks. There is salvation for the bulls at the 61.8% and 78.6% Fibonacci retracement levels.
The A/D indicator has been steadily falling since December. The lack of consistent buying volume reflected the absence of bullish conviction. This helped to explain ENA’s weakness during the recent liquidation event.
While some altcoins and Bitcoin [BTC] can hope for recovery after market uncertainty fades away, ENA might struggle due to the token unlocks.
Read Ethena’s [ENA] Price Prediction 2025-26
This was no reason for traders to be discouraged. The $0.5 level and $0.437 levels were the next supports to watch out for, with the former being a bullish order block from November that initiated the rally.
A move beyond the recent lower high at $0.678 would flip the market structure bullishly on the daily chart. The H4 chart also showed the $0.68 region is an important short-term resistance.
On the other hand, a drop below $0.5 could open a short-selling opportunity and a potential test of $0.437.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
