Key Takeaways
Why is ENA falling?
A 10% drop followed declining volume and heavy sell pressure from recent token unlocks.
What could shift sentiment for Ethena?
Holding wedge support and easing futures shorts might spark a short-term rebound before November’s next unlock.
Ethena [ENA] finds itself at a crossroads. After a sharp 10% drop, traders are watching whether the recent cooldown marks a pause or the start of a deeper slide.
AMBCrypto examined on-chain signals, trading data, and upcoming token unlocks to understand whether ENA’s current pressure could evolve into a broader trend shift.
Volume fades, liquidity dries up
The latest slump followed a noticeable decline in trading volumes, suggesting that the enthusiasm that fueled earlier gains has tapered off.
Lower liquidity typically amplifies volatility, making price moves more erratic once sellers gain control.
Source: Messari
Oversold indicators, but Futures’ bias stays bearish
On the technical chart, Stochastic RSI hovered near 22, at press time, deep in oversold territory, hinting that a short-term relief bounce could follow before testing the $0.45–$0.47 wedge support zone.
Even so, optimism among long-term holders persists as ENA’s consolidation phase nears completion on higher timeframes.
Source: TradingView
However, the Futures market presents a distinct picture.
According to Futures Taker CVD (Cumulative Volume Delta) from CryptoQuant, data showed dominance from taker-sell activity over the last 90 days.
It meant that leveraged traders continued to bet on further downside.
Source: CryptoQuant
This divergence between oversold technicals and persistent bearish futures sentiment leaves ENA in a precarious zone. If buyers fail to defend the current range, a retest of the wedge support appears increasingly likely.
Token unlock adds selling pressure
Adding to the headwinds, data confirmed that 171.88 million ENA worth $101.37 million entered circulation on the 5th of October, raising supply amid declining demand.
Such unlocks often trigger short-term selloffs as recipients offload newly available tokens, and the timing of this event likely amplified ENA’s recent slide.
Another 40.63 million ENA unlock, valued at roughly $21.82 million, is scheduled for the 2nd of November, which could keep downside pressure alive in the near term.
Source: Tokenomist
Key levels to watch
If ENA can hold its wedge support, short-term traders might attempt a rebound toward $0.55–$0.60.
Failure to maintain this level, however, could expose the token to further losses, especially as more unlocked tokens enter the market and futures traders maintain bearish positioning.
