$ENA is currently not looking promising, with its price approaching the next support level of $0.30 amidst persistent bearish trends.
Despite this, there is anticipation for a reversal, as Ethena holds the potential to excel during the upcoming bull market, having seen 140% gains in the previous rally.
$ENA is not looking promising at the moment, approaching the next 0.30$ support amidst persistent bearish trends. Anticipate a reversal, as Ethena holds the potential to Excel during the upcoming bull market.
We've seen 140% gains in the previous rally. pic.twitter.com/2DZ0wf9UOg— Decilizer (@decilizer) July 12, 2024
However, several key challenges are affecting $ENA’s outlook:
1. Ineffective Token Staking: Token staking has proven to be ineffective, with stakers continuing to unstake and leave the ecosystem entirely.
2. Declining $USDe Adoption: The adoption of $USDe has been grinding to a halt, down $200 million after hitting a $3.6 billion ceiling. The sUSDe yield has also been notably poor.
3. Increased Idiosyncratic Risk: The risk associated with multiple chain adoption has increased, posing higher smart contract risks.
4. Upcoming Token Unlocks: A significant amount of locked $ENA tokens are set to be released over the next six months, potentially increasing market pressure.
$ENA FDV vals should be worth about $1.9B (down another 60%-70%, this is why:
– Token staking is ineffective
– Stakers continue to unstake and leave ecosystem entirely– Governance is extremely centralised
– Adoption of $USDe has been grinding to a halt (down $200m after… pic.twitter.com/etAElKTTVF
— Newton (@NewtOnCrypto) July 11, 2024
Other Notable $ENA Token Movements To Monitor By Smart Traders
According to on-chain reports, two hours ago, wallet 0x5b30 deposited 8.23 million $ENA, worth approximately $3.22 million, into Gate Deposit. This amount was just unstaked by the same wallet four hours prior. Known for regularly withdrawing $100,000 to $200,000 worth of $ENA from Bybit and Gate a few times per week and then staking it afterward, the wallet has been performing this series of actions over the past two months since December 5. During this period, $ENA has decreased by 46%.
With a total withdrawal of 8.23 million $ENA at an average price of $0.548, if the entire deposit amount made today were to be sold, the wallet would incur a loss of $1.31 million on $ENA.
2 hrs ago, wallet 0x5b30 deposited 8.23M $ENA ~ $3.22M, into #Gate Deposit
(Watch Smart Money's action with #Ethena at: https://t.co/Deu11Ak7Rv)
This amount was just unstaked by him 4 hrs prior. It is known that he withdraws $100K – $200K worth of $ENA from Bybit and Gate a… pic.twitter.com/17VbSAlwL9
— iCrypto | Sentiment & On-chain Analysis (@iCryptoAI) July 12, 2024
Despite the current bearish trends and challenges, there is still potential for $ENA to recover and excel in the future bull market, making it a token to watch closely.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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