Despite Ethena’s [ENA] rising dominance in the stablecoin business, the market cap of the altcoin remains well below $1 billion. Its daily trading volume is down to around $150 million, but whales are still going long on the token.
However, this buying is happening right before a massive token unlock, which is in two days. Can the buying pressure from whales outweigh the selling pressure and push ENA higher?
Arthur Hayes buys ENA, but selling pressure remains
In the past 24 hours, the co-founder of BitMEX, Arthur Hayes, has made another purchase to increase his ENA position. As per Arkham data, Hayes bought 3 million ENA worth $262.77K from Flowdesk.
A few minutes later, Hayes added another 3 million ENA from the Binance exchange worth $262.11K. The total for both positions was above $525K, with an average price of $0.09.
Moreover, the ENA builder added an eighth consecutive buy of 1.287 million ENA from Binance. The total across these eight transactions was 8.997 million ENA, valued at roughly $739.7K from the same exchange.
Both whales’ positions amounted to more than 7.289 million ENA, valued at over $1.20 million.
However, this activity was happening amid an upcoming token unlock scheduled for August 5. As per Tokenomist, 171.88 million ENA worth $15 million would hit the market. The amount is equivalent to 1.97% of the released supply.
This unlock adds to the 95.31 million ENA worth $8.38 million released on the 2nd of August. The unlock meant that the selling pressure for this month was at its peak during the first few days.
As such, will whale positioning overpower selling pressure from token unlocks and a bearish technical outlook?
Can ENA escape the range market?
The price action was stagnant around $0.09, the level where the whales went long. This movement came after surging by more than 14% from $0.0788 to $0.0904.
This level has resulted in two bearish breakdowns previously. And the RSI Divergence appeared to confirm this projection, printing a bearish signal even though it was rising at 55.
On top of that, the transfer count of ENA was declining on Binance, indicating less trading activity. The transfer count was 2.38K, down from 4.17K in late July.
However, if the bulls can keep the altcoin above $0.0875 with more buying, ENA could break past the top of the range at $0.0924. Otherwise, it may drop to $0.0789, which is the demand level that initiated the 14% rally.
Final Summary
- Arthur Hayes and the ENA builder accumulated over 7.287 million ENA in the past 24 hours, despite looming selling pressure from unlocks.
- Ethena’s price action was consolidating around $0.09, with more bearish signals forming despite whales positioning.
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