Ethena's native token, ENA, has faced a sharp decline following a significant token unlock and a depegging event of its yield-bearing stablecoin, USDe. A $101 million token unlock released 171 million ENA tokens into circulation, contributing to a 10% price drop as recipients sold their holdings, amplifying sell-off pressure.
Technical indicators show the Stochastic RSI at 22, signaling oversold conditions, which could support a short-term rebound near the $0.45–$0.47 support zone. However, futures data from CryptoQuant reveals bearish sentiment has dominated for over 90 days, with taker-sell activity indicating leveraged traders expect further declines.
Compounding the issue, USDe depegged to $0.65 during a market-wide altcoin crash, sparking fears reminiscent of Terra's UST collapse in 2022. Although USDe later regained its 1:1 peg and Ethena's team assured overcollateralization, the event triggered a $1.25 billion outflow in total value locked (TVL) within a day, reflecting investor withdrawals.
Spot market accumulation of ENA slowed to $4.59 million on October 11, the lowest in three days compared to $25.75 million earlier in the week. The token now trades below a critical $0.31–$0.38 support range, with a rebound potentially targeting $0.85 or a drop to $0.265 if selling persists. Another 40 million ENA tokens worth $21 million are set to unlock on November 2, adding to near-term volatility risks.
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