In the past 24 hours, the price of the Ethena (ENA) token has fallen by approximately 4%. This decline is linked to Amber Group's sale of $10 million worth of tokens, prompting short-term market volatility.
Increased Fluctuations After Amber Group's Sale
According to analytics firms, Amber Group transferred $10.35 million worth of ENA tokens to the Binance exchange. These actions augmented market supply and increased selling pressure. As a result, the price struggled to maintain the $0.48 resistance level, heightening the risk of further decline.
Rising Supply and Price Pressure
Earlier this month, Ethena's tokenomics saw 2.06 billion tokens unlocked. The recent release of 94.19 million tokens added to the downward price pressure. Analysts caution that sudden increases in supply can affect investor confidence, complicating price stabilization.
Long-term Prospects for ENA Token
Weekly charts show a 1% decrease in price, while the monthly decline reaches 11%. These figures suggest investors are adopting a cautious strategy amid volatility. The increase in supply and loss of resistance might lead to a new wave of selling.
The ENA token market is experiencing instability following significant Amber Group sales and increased supply, impacting investor sentiment and leading to volatility.
