Crypto News

Ethena Faces Further Decline As Whales Capitulate Amid Losses

The Ethena token (ENA) has continued its downward trajectory, experiencing a 4% decline today and a significant loss of 34% in value over the past 30 days, indicating ongoing challenges for investors.

One notable event contributing to the downturn is the capitulation of a significant whale investor who decided to cut their losses and sell off their ENA holdings. This whale initially withdrew 6.01 million ENA ($5.71 million) from Binance at $0.95 on April 5 and staked it. 

As the price of ENA rose, they withdrew another 3.32 million ENA ($4.76 million) from Binance at $1.44 on April 10, only to see the price decline thereafter.

With the price of ENA continuing to fall, the whale began to capitulate on April 25, unstaking their ENA holdings and selling them at a loss.

In total, they deposited 8.33 million ENA ($6.94 million) into Binance at an average price of $0.83, leaving them with 1 million ENA ($823,000) remaining and incurring a total loss of $2.71 million.

More ENA Whale Withdraws From Exchanges 

Recent data from Spotonchain revealed that another whale, identified as 0x555, withdrew 1.95 million ENA ($1.54 million) from Binance at $0.791, indicating further selling pressure in the market.

Over the past 19 hours, this whale has withdrawn a total of 4.80 million ENA for the first ENA trade from Binance at an average price of $0.82, with an estimated cost of $3.94 million, using two wallets, 0x418 and 0x555. Additionally, the whale has staked 3.8 million ENA with Ethena and 1 million ENA with Pendle Finance.

These developments underscore the challenges facing Ethena as investors grapple with market uncertainty and selling pressure, highlighting the need for caution and strategic decision-making in volatile market conditions.

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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Image Source: leddamarita/123RF // Image Effects by Colorcinch

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