Ethena Price Prediction: Is $3.4 Billion TVL Enough to Push ENA Back to $1?

Ethena Price Prediction: The second week of June has been notably bearish for the cryptocurrency market as Bitcoin price struggled to sustain above $71000. A bearish turnaround from the BTC price aligned with the market uncertainty ahead of the U.S. CPI data triggered a fresh correction phase of most of the major altcoins. Amid the downfall, Ethena coin lost $1 value and plunged to a three-week low of $0.684. Will this correction be extended?

Also Read: Crypto Prices Today June 12: Bitcoin & Altcoins Extend Bearish Movement, PEPE & BONK Prices Rally

Ethena Price Prediction: Key Support Levels to Trigger a Major Reversal

Ethena token entered the current correction on April 11th, after its peak at $1.523 Mark. The bearish reversal tumbled 57.12% down to seek support at $0.653. While the May-month recovery in Bitcoin bolstered the ENA price for fresher recovery, the altcoin failed to hold a $1 value and resulted in an immediate reversal.

With a weekly loss of 27%, the Ethena coin trades at $0.72 and holds a market cap of $1.105. Moreover, the largest staker of ENA tokens recently unstaked and sold a significant portion of their holdings at a loss. According to on-chain data tracker Lookonchain, the staker unstaked all 23.24 million ENA tokens ($17.3M) and sold 19.36 million ENA tokens ($14.1M) at a loss.

The largest $ENA staker unstaked all 23.24M $ENA($17.3M) 13 hours ago and sold 19.36M $ENA($14.1M) at a loss.

He withdrew 23.24M $ENA($30M) from #Binance at $1.29 between Apr 10 and Apr 5.

He currently has 3.88M $ENA($2.74M) left, with a loss of more than $13M!… pic.twitter.com/T2Akf6havZ

— Lookonchain (@lookonchain) June 12, 2024

The staker withdrew 23.24 million ENA ($30M) from Binance at $1.29 per token between April 10 and April 5. They now have 3.88 million ENA tokens ($2.74M) left, resulting in a loss of over $13M.

This transaction puts additional supply pressure on ENA as larger holders existing could indicate a potential for further correction. If supply pressure from the broader market persists, the sellers could flip the $0.65 support and resistance.

The post-breakdown fall could tumble ENA value nearly 30% down to hit the $0.5 psychological level.

Also Read: US CPI Analysis By Wall Street and Options Data Signal Crypto Market Recovery

On the contrary note, Ethena’s Total Value Locked (TVL) has reached an impressive milestone, exceeding $3.4 billion, according to the latest analysis from crypto analytics firm IntoTheBlock. This growth highlights Ethena’s expanding user base and increased investment in the platform, signaling strong confidence from the crypto community.

Ethena’s TVL continues its impressive growth trajectory and now exceeds $3.4 billion! pic.twitter.com/K7bWOpnxSO

— IntoTheBlock (@intotheblock) June 12, 2024

This Onchain data hints the broader market sentiment remains positive towards Ethena which could bolster reversal from $0.65 indicating a crucial pivot level. 

A potential reversal will develop the double bottom pattern and uplift the ENA price above $1 shortly.

Technical Indicator 

• EMAs: The ENA price falling below the 20-and-50-day Exponential Moving Average slope indicates the near-term trend in bearishness.
• ADX: The ADX slope falls to 15% indicating the ongoing correction allows buyers to stabilize the asset for a higher rally.