Ethena Drops 17% as Whales Sell 2.65 Million ENA

Ethena [ENA] has experienced a significant decline, dropping by 17% in the past 24 hours. This downturn is primarily driven by large investors, who have been selling off their holdings, contributing to a notable sell-off. These large investors, often referred to as whales, sold approximately 2.65 million ENA worth around $977,000, which has had a substantial impact on the market.

The selling pressure from these large investors is significant because their actions often influence broader market behavior, prompting other participants to list their assets at lower prices. This trend is reflected in the derivatives market, where the Taker Buy/Sell Ratio continues to fall, currently reading 0.884. If this trend persists, it could indicate that more sellers are entering the market, potentially causing further price drops as volatility increases.

Despite the selling pressure from large investors, spot retail investors have been actively buying ENA, spending $1.59 million in the process. This indicates a strong willingness among retail investors to maintain price stability. The trend of retail accumulation could continue in the coming days, potentially helping ENA recover some of its recent losses.

Further analysis indicates that even if selling pressure from large investors subsides, a major resistance level lies ahead. The In/Out of the Money Around Price (IOMAP) metric shows potential resistance at $0.378. At this level, 2.83 billion ENA were previously sold by just 1,430 traders, and additional sell orders remain. This suggests that if the price rallies toward this point, another decline could follow, pushing the asset’s price even lower.

Ethena’s development activity remains solid, with no critical upgrades or fixes pending. An analysis of its GitHub reveals that current commit activity and stars are at an all-time high, reflecting a healthy level of developer contribution to the platform. If this momentum continues, it suggests gradual improvements aimed at enhancing user interaction with Ethena—an overall net positive for ENA.

For now, the bears remain in control. However, sustained development and continued spot market accumulation could play a critical role in ENA’s recovery and future growth. The positive social sentiment and strong developer activity provide a foundation for potential recovery, but the market will need to navigate the resistance at $0.378 to see significant gains.