Whale Dumps $5M Ethena After Triple Rejection at $0.77: What’s Next?

Key Insights

• Ethena wallet “0x877” deposited 5M ENA, worth $3.81M, into Binance, taking their total tokens sold to 34 million.
• Smart Money was slightly distributed as the CEX supply ticked up.
• The $0.77 is the crucial level Ethena ENA must clear.

Ethena (ENA) continued to double down as a DeFi token and as a protocol for its synthetic dollar, USDe. The token was up by only 3% in the last 24 hours. On the other hand, the daily volume surged by 50% per CoinMarketCap data.

Ethena Labs is also partnering with Hyperliquid to support a wider adoption of their stablecoin. At the same time, it adds value that strengthens user engagement. Their integration into the Hyperliquid platform enabled debit card functionality, savings, and staking features.

The altcoin could trade inside a distribution phase, as the whale data denoted. There has been massive offloading by the big players and retail after the prices faced significant resistance.

Cumulative Amount of Ethena Tokens Sold by Whales

Like other big players, whales have been offloading their ENA holdings over the last two weeks. These large holders typically exercised the ‘selling the highs’ strategy in financial markets after purchasing at the $0.60 zone.

Onchain Lens data on X shows that a whale’s wallet sold 5 million ENA valued at $3.80 million on the Binance exchange. This took their total deposits on Binance to 34 million ENA, worth more than $22 million.

For holders with more than 10M ENA, their total assets sold stood at 140 million over this period. The collective profit-taking from these large holders indicated that the DeFi token was about to drop in valuation. But does this mean ENA holders were entering a distribution phase?

Is Ethena In A Distribution Phase?

The monthly wallet balances from the Nansen AI tool showed that Smart Money (SM) was mainly distributed. The amount held by Smart Money was $132 Million after a 7% drop.

This was despite some whales buying small quantities over the same period, with the biggest additions coming from public futures wallets. Their balance was valued at 56 million ENA, a 30% increase in one month.

The Distribution Score reading was at 7. The top 100 holders possessed about 46% of the ENA total supply. The distribution phase was evident as the CEX supply ticked above 55 million ENA. The trend began this September when the value was below 44 million ENA.

Volume is also critical to gauge when analyzing the distribution phase of crypto assets. The signals from the Futures and Spot Volume Bubble Maps, as analyzed by iCryptoAI, spoke the same language.

The combination of such big volumes, sharp pump, and sideways movement indicated a possible distribution phase despite the low score.

ENA Price Faces 3 Consecutive Rejections

Similarly, the message from price action was the same. However, renowned analyst Ali Charts noted that one key factor could change the bias. Ali wrote, “$0.77 is the crucial level Ethena must clear!”

Bulls and bears of ENA crypto were battling at the price range between $0.60 and $0.77. Buyers appeared to be defeated, as earlier discussed actions by participants suggested.

ENA price had also been rejected three consecutive times at $0.77. This indicates the bullish rally from the range’s bottom was ending.

Traders took advantage of earlier gains by selling to secure profits. They anticipated a price pullback toward the $0.70 midpoint. If it fails to depend on the midpoint, ENA could revisit the floor at $0.60.

In summary, the ENA price was in a potential distribution phase, thus prompting a wait-and-see moment. However, a break and sustained stay above $0.77 could flip the current narrative. Still, there was a need to consider fakeouts to prevent trapping of longs.