Ethena token unlock will release $728 million worth of tokens on March 5, adding 2.07 billion ENA into circulation.
According to data from Tokenomist, this unlock accounts for 66.19% of its total supply. Ethena (ENA) currently has 3.13 billion tokens in circulation and a $1.08 billion market capitalization.
This comes as Ethena’s stablecoin, Ethena USDe (USDe), saw its largest-ever single-day redemption on March 1, with 268 million USDe withdrawn, reducing the total supply by 4.7%. ENA has dropped 18% in the past 24 hours.
On the technical side, ENA is currently trading at $0.3476 and is clearly on a downtrend. Strong selling pressure is indicated by the surge in volume with dominance in red candles and is probably related to the recent token unlock. The 9-day EMA continues to act as resistance, reinforcing bearish momentum.
ENA’s latest slump was exaggerated by a surge in sell-offs following a failed breakout near $0.4836. The relative strength index at 36.85 indicates that the token is getting close to the oversold area, but no obvious signs of a reversal have appeared.
The price may decline even more if ENA drops below $0.3476, which might lead to new lows. On the upside, the closest resistance level is $0.4028, and a high volume reclamation would indicate the beginning of a recovery. The trend is still bearish for the time being, but a stronger bullish move could target $0.4836.
Ethena is building a crypto-native alternative to traditional banking with its Ethereum-based synthetic dollar system, USDe. At $5.4 billion, USDe is now the fourth largest stablecoin. Ethena plans to launch its blockchain and introduce a TradFi-compatible token. It is also rolling out iUSDe, a version of its staked USDe designed for institutional investors, set to be its main focus in Q1 2025.
