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ENA Reserves Fall as Price Climbs 3% — More Upside Coming?

4 hours ago
Bitcoin Ethereum News

Key Notes

  • 140 million ENA have been withdrawn from exchanges in the past four days.
  • Ethena’s TVL surged to just below $12 billion, reflecting growing adoption.
  • ENA is currently trading around $0.66, up by 3% in the past 24 hours.

While the broader crypto market remains flat, Ethena

ENA
$0.65



24h volatility:
2.4%


Market cap:
$4.30 B



Vol. 24h:
$536.75 M

has gained 3% in the past day, showing resilience amid uncertainty.

At the time of writing, the 32nd largest cryptocurrency trades around $0.66 with a market cap of $4.38 billion.


This comes as ENA exchange reserves saw a significant drop recently. According to data shared by Ali Martinez, over 140 million ENA tokens have been moved off exchanges in the past four days.

Such exchange outflows often suggest investors are shifting toward self-custody, suggesting confidence in long-term ENA value.

ENA Price Strengthens With Recent Developments

ENA price performance has been particularly strong since July after Upbit announced the token’s listing on its platform.

After months of sideways and downward trading, ENA surged from $0.24 to a local peak of $0.84 on August 11, marking a 350% rally. This explosive move has solidified bullish sentiment among traders.

The rally coincided with Ethena’s $260 million buyback earlier this month, which removed nearly 8% of circulating supply from the market.

Meanwhile, the project’s stablecoin USDe supply grew by 75% to $9.3 billion. Moreover, the passage of the GENIUS Act in the United States has accelerated the launch of the regulated synthetic dollar, USDtb, boosting institutional confidence

Ethena’s Total Value Locked (TVL) has also skyrocketed, currently just below $12 billion, suggesting increased activity across its ecosystem.

Despite this, the broader crypto market uncertainty has resulted in a 24% price drop from its local top. LookonChain shared on X that wallet address 0x2611 is currently down more than $1.85 million on an open ENA long position.

To avoid liquidation, the trader deposited an additional 1.7 million USDC into Hyperliquid

HYPE
$41.87



24h volatility:
0.7%


Market cap:
$14.00 B



Vol. 24h:
$241.17 M

earlier today.

Analysts Suggest Bullish Sentiment

ENA has recently broken out of a descending wedge pattern on the 4-hour chart. This suggests the possibility of continued upside momentum, particularly if buying volume expands.

On the daily ENA chart, the price is consolidating the midline (20-day SMA) of the Bollinger Bands. If the cryptocurrency pushes above $0.72, traders could expect a retest to the local high of $0.84.

However, ENA could drop to the $0.61 level (200 EMA) in case it fails to hold the mid band.

ENA price chart with RSI and Bollinger Bands. | Source: Trading View

ENA price chart with RSI and Bollinger Bands. | Source: Trading View

The RSI is currently near the neutral zone, leaving room for price movement in either direction. A further upward move in RSI would confirm bullish strength.

Popular analyst Altcoin Sherpa recently suggested a bullish scenario for ENA, predicting it could be the next crypto to explode. He explained that the current price level may present a good buying opportunity for investors.

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Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

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Parth Dubey

A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.

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Source: https://www.coinspeaker.com/ena-reserves-fall-price-climbs-3-more-upside/