The Ethena (ENA) token has seen a notable 4% price drop in the past 24 hours. A major $10 million liquidation by Amber Group has increased market volatility.
What Caused the Price Drop?
Amber Group recently transferred $10.35 million worth of ENA tokens to the Binance exchange. This move followed a purchase of $2.5 million tokens two weeks earlier from a competing exchange at an average price of $0.3979. The influx of tokens has raised market supply, intensifying selling pressures.
How Do Unlockings Affect Market Stability?
This month, Ethena unlocked 2.06 billion tokens, with 94.19 million recently entering circulation, contributing to the price decline. While increased liquidity from token unlockings can be beneficial, they also pose significant downward pressure on token values, creating apprehension among investors and complicating price stabilization.
Current Price Dynamics
Market indicators reveal a 1% decrease in weekly prices and an 11% drop over the month, highlighting a shift towards caution among traders. Key points include:
Current price dynamics suggest that without robust support from buyers, the market may face additional downward pressure, potentially triggering a new wave of selling.
