Coinspeaker
Ethena Faces Massive $820M Token Unlock Representing 66% of Circulating Supply
Ethena (ENA) is set to experience a major market event as it leads this week’s token unlocks with a massive $820 million release. According to Tokenomist data, this unlock represents 2.07 billion tokens, accounting for 66.19% of ENA’s circulating supply. The substantial size of this release far exceeds other unlock events in the same period.
Token unlocks introduce volatility into the market, especially when the percentage of circulating supply unlocked is as high as ENA’s. Such a large-scale event puts bearish clouds over a cryptocurrency as fears of a massive sell-off event take over. It is important to note that if demand is strong enough to absorb the newly available supply, downside pressure could be mitigated.
Historically, large unlocks can result in immediate downward price movements as investors anticipate increased selling pressure. Tokenomist reveals that alongside ENA, Movement (MOVE) will release 50 million tokens ($23.14 million) this week. Moreover, Solana (SOL) will unlock 465.7K tokens ($73.5 million), while Worldcoin (WLD) will release 37.23 million tokens in the market ($43.18 million).
Additionally, this humongous unlocking schedule comes to light amid the Ethena stablecoin USDe experiencing the largest single-day redemption in history on March 1, reaching about 268 million, causing the total USDe to drop by about 4.7%. The largest redeemers on that day came from 0x59…705d (180 million tokens) and Sky (70 million tokens).
ENA Price Analysis
ENA is currently trading around $0.3945, down by around 11% in the past day. The token currently boasts a market cap of $1.23 billion, as per the data by CoinGecko. On the daily ENA price chart, the Relative Strength Index (RSI) currently stands at 40.51, with the 14-day moving average at 38.15. While ENA is not yet in the oversold zone, the gradient of the line suggests weak buying momentum.
Meanwhile, ENA price is also trading near the lower band of the Bollinger Bands at $0.3754, while the middle band (20-day SMA) is at $0.4325, and the upper band is at $0.4896. This setup suggests that the price is in a downward trend and could either continue lower or experience a reversion toward the middle band.
Given the large token unlock, ENA’s price could break below the lower band if selling pressure remains high. A break below $0.375 could result in a drop towards $0.30 or lower. However, if buyers step in, the next resistance zone would be around $0.43-$0.49.next
Ethena Faces Massive $820M Token Unlock Representing 66% of Circulating Supply
