Trump-Firm's 184,000 ENA Token Selloff Sparks Crypto Market Concerns

Donald Trump’s World Liberty Financial has recently sold 184,000 ENA tokens, causing a stir in the crypto market. This significant selloff has raised concerns among traders and investors about the future trajectory of Ethena's price. The synthetic dollar protocol built on Ethereum has already been subject to volatility due to massive token unlocks and previous dumps by market makers. The latest selloff by World Liberty Financial has only exacerbated these concerns, leading to a bearish sentiment among market watchers.

The data from Arkham Intelligence indicated that World Liberty Financial sold 184,000 ENA tokens for $69,000 over the past day. This selloff has sparked concerns over Ethena's price action and its long-term prospects. The Trump family-backed firm had previously purchased 11 tokens, including the one mentioned above, via its WLFI sale funds. Most of these assets were soon shifted to Coinbase Prime, making it unclear to the market what the selloff transactions entailed.

However, a portion of the ENA holdings was transferred to the ‘0x76a’ custodial wallet address. This wallet address then shifted 180,000 tokens to the address ‘0x77a,’ which subsequently sold the amount received for WBTC. This transactional process gained significant traction, with market watchers speculating whether further token selloffs are imminent. The synthetic dollar protocol on Ethereum remains bearishly eyed by investors due to this saga.

In addition to the selloff by World Liberty Financial, other factors are contributing to the uncertain investor sentiment about Ethena's future price movements. A market maker, Amber Group, recently offloaded $10 million worth of ENA to Binance, increasing the exchange supply and solidifying bearish market sentiments. Furthermore, recent ENA token unlocks have ushered in price volatility. March saw over 2 billion coins unlocked and added to the crypto’s supply, and April is expected to see over 200 million coins unlocked on April 2 and 5 collectively. Traders and investors remain cautious about future Ethena price movements due to these unlocks.

World Liberty Financial’s massive selloff potentially aligns with the past and looming unlocks in an effort to mitigate losses. As of the latest update, ENA price witnessed a nearly 1% jump in value, reaching $0.3989. The crypto hit a low and a peak of $0.3883 and $0.4098 intraday. Despite the selloffs and massive token unlocks, the weekly chart showed a 7% upswing, underlining a resilient movement. However, the monthly chart showed a 10% slump, adding to speculations.

Crypto market traders are currently uncertain about the asset’s performance ahead as broader trends indicate that volatility looms, whilst the price chart shows resilience. Ethena price prediction by analysts shows that bears remain dominant, as per the 3-month bias indicator. Nevertheless, renowned market trader Byzantine General took to X, projecting an optimistic outlook for the synthetic dollar protocol crypto. The trader revealed that the crypto’s funding rate isn’t negative anymore, suggesting a bullish movement looms. Further, ENA got heavily shorted primarily due to its massive token unlocks, but the heat has now cooled down, per the analyst. Nevertheless, despite positive reaffirmation by renowned traders, it remains vital to gauge in broader aspects that underscore volatility is possible.