Ethena's Price Plunges Amid Fresh Supply and Positioning Concerns

Ethena (ENA) saw its price drop by approximately 3.3-3.8% over the last ~26 hours, but this move is largely attributed to token-specific supply and positioning rather than a broad market dump.

The main driver of ENA's short-term underperformance was a new unlock of about 40.63M tokens, which led traders to focus on fresh supply and selling pressure.

A project-linked wallet deposited 14M ENA to Bybit in the same window, further contributing to concerns that part of the newly unlocked supply might be headed for sale on a liquid venue.

The unlocking and CEX deposits became an excuse for traders who had been long from lower levels to take profits, especially with a visible resistance zone overhead and a softening short-term momentum profile.

The broader crypto market was relatively calm during this period, with total crypto market cap staying around 2.69 trillion dollars and altcoin market cap outside BTC barely moving.