Ethena Price Prediction: Cryptocurrency Market Correction Impacts ENA
The first half of June witnessed a bearish trend in the cryptocurrency market, with Bitcoin struggling to maintain levels above $71,000. This downturn, coupled with market uncertainty surrounding the U.S. CPI data, initiated a corrective phase for many major altcoins. Amidst this decline, Ethena (ENA) lost $1 in value, reaching a three-week low of $0.684.
Correction Analysis
Ethena entered its current correction on April 11th, following a peak of $1.523. The bearish reversal resulted in a 57.12% decline, seeking support at $0.653. While Bitcoin's recovery in May provided some support for ENA, the altcoin failed to maintain $1 and reversed course. With a weekly loss of 27%, ENA is currently trading at $0.72, with a market capitalization of $1.105 billion.
Major Holder Sale
A significant event influencing ENA's correction was the recent unstaking and sale of a large portion of tokens by a major holder at a loss. According to on-chain data tracker Lookonchain, the staker sold 19.36 million ENA tokens ($14.1 million) of their 23.24 million ENA stake ($17.3 million).
Support Levels
If market conditions persist, the $0.65 support level could be broken, leading to a decline of almost 30% to the psychological level of $0.5.
Conclusion
The bearish correction in the cryptocurrency market and the sale of a large portion of ENA by a major holder have contributed to ENA's recent decline. The ability of ENA to reverse this downtrend will depend on key support levels and overall market sentiment.