Ethena price drops 35% in a month as whale activity and market volatility raise questions about its recovery prospects.
Ethena (ENA), a popular cryptocurrency that was once worth a lot, has lost value over the past month. As of January 17, 2025, its price is $0.91, which is 35% lower than its highest recent price. This fall has made investors and experts worry about its future. Let’s look at the main reasons for this drop, recent market activity, and what might happen to ENA’s price in the future.
Ethena Price Drops and Market Performance
Ethena’s current trading price of $0.91 is a notable dip from its early January peak of $1.27. The price of the ENA token has fallen below its important support level of $0.86, which is now acting as resistance. In the past seven days, ENA has lost 17% of its value, showing a strong downward trend.
Ethena price drops happened because of a larger market downturn and big sell-offs by large traders, also called “whales.” On December 26, 2024, these traders sold 3.36 million ENA tokens worth $3.17 million on Binance. This caused the price to drop sharply by 10%, bringing ENA down to $0.95. Although the price went up to $1.27 at the beginning of 2025, the recovery didn’t last long, and the token has now fallen back to $0.81.
Market Cap and Trading Volume
Ethena’s market value has fallen from $3.8 billion on January 4, 2025 to $2.47 billion. This now makes it the 47th largest cryptocurrency by market value. Also, the daily trading volume has dropped by 27%, and it is now at $440 million. This decrease in trading shows that investors are becoming unsure about ENA’s future in the short term.
Whale Activity: A Double-Edged Sword
Big traders, called whales, have greatly affected ENA’s price changes. The large sell-off in December caused the current price drop. However, recent actions by whales show they might have faith in ENA’s future. On January 15, 2025, a whale moved 1.96 million ENA tokens, worth $1.63 million, from Binance to their private wallet. This kind of move often means they believe the token will grow in value, even though prices are still changing a lot.
Technical Analysis: Key Levels to Watch
Support and Resistance Levels
The loss of the $0.86 support level is an important event. Experts say that if ENA’s price doesn’t go back above this level, its price might fall further. The next possible support levels are $0.69 and $0.57. These are the lower points from earlier price ranges and could be places where investors start buying again if prices keep dropping.
On the positive side, if ENA’s price goes strongly above $0.91, it could rise to $0.98 or even $1.00. However, the token will need strong and steady growth to overcome these higher levels.
Bollinger Bands and Moving Averages
Bollinger Bands analysis shows that the price is moving a lot with the token trading close to the lower band and below the 20-day simple moving average (SMA). This suggests that the price is going down, but if the price bounces back from these levels, it could mean a possible change in the trend.
The EMA 50 and EMA 100, at $0.85 and $0.90, act as resistance points. If the price goes above these levels it would be a good sign for people who think the price will go up.
RSI Indicator
The Relative Strength Index (RSI) is now at 55.46, which is neutral. If it goes above 60, it could mean the price will start going up. On the other hand, if it falls below 50, it would show that the price is more likely to keep going down.
Price Prediction for Ethena (ENA)
The short-term future for Ethena is unclear, with the $0.86 level being very important. If the price goes back above this support, it could rise to $1.00. But if the price doesn’t go back above $0.86, it might drop further, reaching $0.69 or $0.57.
Long-term prospects will depend on broader market conditions and investor confidence. Whale buying and moving their tokens to private wallets suggest that they might be hopeful about ENA’s future. If the market becomes more stable and more people start buying Ethena could start going up in value again later in 2025.
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Ethena Price Drops: Conclusion
Ethena price drops over the past month underscores the challenges facing cryptocurrency in a volatile market. While the loss of key support levels and declining market cap are concerning, whale activity and technical indicators provide a glimmer of hope for recovery. Investors should closely monitor critical levels like $0.86 and $0.69, as these will determine the token’s next major move. Whether Ethena can reclaim its former glory or continue its downtrend remains to be seen, but the coming weeks will be crucial for its trajectory.
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