Ethena's native token ENA has faced sustained selling pressure, with its price declining significantly over the past week. Between November 1st and 2nd, the price dropped from $0.3917 to $0.3624, and it is currently trading down by 31% on weekly charts and 10% daily. Trading volume initially fell from $387,848,062 on October 31st to $185,700,974 on November 2nd, but saw a 56.30% increase to $244,642,889 in the last 24 hours, indicating volatile market activity.
The decline follows two weeks of gains totaling around 20%, where ENA briefly breached the $0.50 level, now acting as resistance. Market capitalization has shrunk from $3,162,489,112 on October 30th to $2,766,268,350 on November 2nd. Technically, ENA is confined within a descending channel, with analysts noting weak momentum and fading volume. Support at $0.40 was lost, and the price is testing the $0.35 level, which previously provided a bounce on October 14th.
Key factors driving the bearish sentiment include a sharp drop in Total Value Locked (TVL) from $14.818 billion on October 10th to $9.41 billion, signaling reduced investor confidence and liquidity. Open interest in ENA futures declined by 10.27% to $492.74 million, reflecting cautious trader behavior. Additionally, an upcoming $63.05 million token unlock, representing 2.52% of the supply, is expected to add selling pressure this week. The RSI is at 30, indicating oversold conditions, but recovery hinges on reclaiming key EMAs at $0.3872 (20-day) and $0.41 (50-day). Analysts warn that a break below $0.35 could lead to further declines toward $0.29-$0.30.
