The largest holder of Ethena (ENA) tokens deposited a substantial amount of 19.36 million ENA tokens, valued at $14.1 million, to Binance on June 12, 2024, according to data from the on-chain analytics firm Spotonchain.
During the recent downturn in the cryptocurrency market, major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) have seen consistent declines over the past week. Bitcoin’s price dropped by 5.8%, while Ethereum experienced a 10% decline.
ENA Whale Dump Triggers Market Reaction
Following a significant downturn in the cryptocurrency market, the largest holder of Ethena (ENA) tokens executed a major transaction, depositing 19.36 million ENA tokens valued at $14.1 million to Binance on June 12, 2024. This move, highlighted by Lookonchain, comes amidst a bearish sentiment affecting major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), which have seen declines of 5.8% and 10% respectively over the past week.
ENA status highlighted by Lookonchain, Source: X
The average deposit price for the ENA tokens was reported at $0.73. However, the same trader had withdrawn 23.24 million ENA tokens worth $29.9 million from Binance when the token price was nearing $1.29 between April 10 and April 15, 2024. This recent dump reflects the trader’s bearish outlook, potentially influencing market sentiment among other traders.
Despite the significant deposit, the trader still retains 3.88 million ENA tokens valued at $2.76 million. The transaction resulted in a substantial loss of $13.07 million, equivalent to 44% of the initial investment.
Following the massive dump on Binance, the price of ENA tokens experienced a drop of nearly 5%. Currently, ENA is trading around $0.70 and has seen a 5% decline in the last 24 hours, reaching an intraday low of $0.68. Over a longer period, ENA has faced a 25% decrease in the last 7 days and a 15% decline in the last 30 days, reflecting ongoing market volatility.
ENA’s Technical Analysis and Market Sentiment
Expert technical analysis indicates a potential bullish outlook for Ethena (ENA) amidst recent market movements. Currently, ENA is forming a bullish double-bottom pattern on the daily timeframe, centered around a critical support level near $0.67. This pattern suggests a possible reversal to the upside if sentiment shifts positively. However, caution is warranted as the Relative Strength Index (RSI) technical indicator shows a bearish divergence, indicating underlying bearish pressure in the chart.
Source: TradingView
Despite recent bearish movements and significant whale dumps of ENA holdings, some investors perceive the current market conditions as an opportunity. These investors are actively buying ENA assets, betting on potential recovery and long-term value.
The continuous activity of whale transactions in the ENA market underscores ongoing volatility and investor sentiment shifts. While some whales are opting to liquidate their holdings, others remain optimistic about ENA’s future prospects amidst market fluctuations.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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