Ethena Set for $820 Million Token Unlock, 66% of Circulating Supply
Ethena (ENA) is poised for a significant market event with a token unlock of $820 million, equating to 2.07 billion tokens or 66.19% of its circulating supply. This release exceeds other upcoming unlocks.
Token unlocks typically create market volatility. The high percentage of unlocked supply raises concerns about potential sell-off pressure. If demand can absorb the new supply, the bearish impact may lessen.
Historical trends indicate that large unlocks often lead to immediate price declines due to anticipated selling pressure. Other tokens unlocking this week include:
- Movement (MOVE): 50 million tokens ($23.14 million)
- Solana (SOL): 465.7K tokens ($73.5 million)
- Worldcoin (WLD): 37.23 million tokens ($43.18 million)
This unlocking coincides with Ethena's stablecoin USDe experiencing a historic single-day redemption of approximately 268 million on March 1, which decreased total USDe by about 4.7%. Major redemptions included 180 million from 0x59...705d and 70 million from Sky.
ENA Price Analysis
ENA is trading at around $0.3945, down 11% over the past day, with a market cap of $1.23 billion. The Relative Strength Index (RSI) is at 40.51, indicating weak buying momentum.
Currently, ENA is near the lower Bollinger Band at $0.3754. The middle band is at $0.4325, and the upper band is at $0.4896. A break below $0.375 could lead to a drop towards $0.30 or lower. Conversely, if buying interest increases, resistance may be found between $0.43 and $0.49.