Whales Stacking Up Ethena Despite Current Dip, Will Prices Recover?

Key Insights:

• Whales added 32 million ENA despite the recent market dip.
• Ethena transactions rose 230 percent, signaling sustained network growth.
• BNB joined Ethena’s framework as XRP and HYPE awaited approval.

The Ethena price has been on a sharp decline edging down by close to 10% to trade at around $0.69. The fall followed the initial retest of resistance in and around the $0.76 levels, met with significant selling pressure.

On the hourly timeframe, ENA has encountered a down channel. The Ethena price movement is making steady descending highs and lows, which indicates that the mood in the short term is pessimistic.

Whales Accumulate Despite Current Ethena Price Weakness

Despite this downtrend, large holders are moving counter to the trend as shown by on-chain data. As of this writing, wallets containing 1 million to 10 million ENA have stacked 32 million ENA in the past 24 hrs, as per Santiment statistics.

Such a sharp increase indicates it may have been pushed by institutional and high-net-worth player participation, though retail investor sentiment is negative.

The whale accumulation has been increasing since the end of July. The Ethena price went up to near the value of $0.75 a month later. Currently, the whale holds 766 million ENA as compared to 655 million ENA in late June.

As short-term traders exist in the wake of the recent pullback, whales are taking the chance to add to their positions. In the past, this kind of action has served to mitigate downside volatility, albeit not immediately.

Ethena Price in a Consolidation Phase

More Ethena price charts indicate that the asset is in a consolidation phase inside a descending channel. This follows a sharp rally that took place at the beginning of the month.

There is a clear reload at the resistance zone of $0.75-$0.76; buying pressure has persisted to always come out here. The slightest support is at about $0.68, a decisive support without which ENA may decline further towards $0.65.

On the other side, the fall in the relative price of practically 10% within a day announces the growth of volatility. On the opposite side, the occurrence of whale stacking gives rise to a price action-on-chain flows divergence. This divergence may point to the accumulation at discounted prices and cause a rebound if market sentiment goes positive.

Daily Transactions Show Strong Growth

On-chain activity shows that the total transaction volume of Ethena has increased immensely within the past three months. According to Artemis data, the daily number of transactions increased starting in the beginning of June.

The stats stood at 5,000 then before reaching its highest mark of more than 30,000 on the eve of August. By August 25, the figure remained high at 14,100 daily transactions, and this is 230 percent greater than the base level.

This expansion shows that the network is used continually regardless of the fluctuation of prices. The growing number of transactions may provide support to long-term stability.

Even in the price downturns, the increased user activity further gives credit to the argument of continued whale accumulation since they might be expecting overall hub activity.

Ethena Expands Asset Framework With BNB, XRP, and HYPE

Recent governance and ecosystem updates Ethena gave can also be considered the context behind whale activity. Ethena Labs announced a new Eligible Asset Framework supporting its USDe synthetic stablecoin only two days ago. Finally, this model allows it to accept a wide range of crypto assets users might want to use as collateral. However, this is as long as they are above a given threshold in terms of liquidity and open interest.

Along with the update, Binance Coin (BNB) was officially accepted, with XRP and Hyperliquid (HYPE) being considered. The framework sets each asset to exceed 1billion open interest and a strict flow on spot and perpetual trading volumes. Both XRP and HYPE have looked above these figures, with XRP having an OI of over $2.9 billion and HYPE trading above an OI of $1.7 billion.

This structural evolution is also why on-chain adoption and whale activity in ENA persistently remain high.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.