Ethena has been declining for the past two days after climbing from a minimum of $0.19. ENA, as a result, dropped to an all-time low of $0.22 and then slightly recovered.
Press time ENA The price was $0.23 and the chart showed a sharp decline of 7.27%.
After the market’s retracement the Ethena Team jumped in and tried to pump up the altcoin by accumulation.
Twelve million ENAs in Team Wallet
As per Arkham Bybit has paid 25 Million ENA, or $5.93Mn to the ENA Team wallet.
This move by the team was in preparation for another purchase made a day before, when they withdrew $25 million ENA worth $6.25million. Over a 24 hour period, the team withdrew a total of 50 million ENA valued at $12.18million.
These two activities are a return of an old pattern, after a large amount tokens were sold a week earlier.
Source: Arkham
The team made a deposit of 40 million ENA, worth approximately $8.16million. After closing the hole created by the sale, total wallet holdings have now risen to 789.8 millions ENA worth $185,000,000.
The move by this team is not unique, since top holders also jumped in the market as ENA’s retracement was reversed.
In the last 24 hours, holders of top ENA coins increased their holdings to 171.65 millions ENA while selling only 83.29.
This resulted in Holder’s Balance Change remaining positive at 88.36 millions ENA. It is clear that spot accumulation has been aggressive.
Source: Nansen
The team’s accumulation, supported by top holders of the stock, signals a strong belief in the market. They anticipate that the market will recover from its current decline.
As demand increases, the price has historically increased and a major player’s accumulation of stocks follows.
What happened to ENA?
ENA, despite its continued effort to improve, saw a steep drop in sales as the other participants on the market, and especially those from retail, tried to get their money.
Coinalyze reports that on January 8, sellers outnumbered buyers, as the sell volume was 22,59 millions compared with 15,75 million for buy volume.
Coinalyze
The altcoin’s Buy Sell Delta was a negative -6.85million, which is a sign of aggressive selling. Seller dominance is often the cause of an asset’s decline, which can lead to lower prices.
These purchases can ENA be a source of support?
Ethena’s attempt to increase ENA’s price by absorption the rising sell pressure has failed. ENA’s price fell below the EMA50 and this signaled a growing bearish trend.
The Stochastic Momentum Index made a bearish cross-over and fell deeper into the negative zone, to 42.
TradingView
The downward spiral was a sign of a stronger bearish trend backed up by strong pressure from sellers. So, the sellers controlled the market and made recent purchases insufficient for a trend change.
ENA is therefore likely to suffer further losses due to the current market conditions. So, ENA could fall towards the $0.20 level.
The team may be able to reclaim EMA50, at $0.25. They could then target $0.30. The altcoin needs to be above $0.23 in order for this forecast to remain valid.
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Source: ambcrypto.com
