Ethena [ENA] faced rejection at $0.26 after the broader market reversed on the 4th of October.
Since then, the altcoin has remained under strong downside pressure, falling to a low of $0.21. At the time of writing, Ethena traded around $0.219, down 6.57% over the past 24 hours.
The price drop pushed ENA below its 20-day Exponential Moving Average (EMA), indicating weaker short-term momentum.
Did Ethena’s team sell into the decline?
Despite ENA’s continued decline, reported team activity raised concerns about further selling. X user Nazoku alleged that the Ethena team sold $3.45 million worth of ENA on OKX.
It also described an earlier transfer of nearly 400 million tokens from a team wallet to a proxy contract. That transfer reportedly occurred five days before the post. Nazoku said tokens later passed through an intermediary wallet before sales on OKX.
Usually, projects sell tokens for various reasons, including funding operational costs. The reason for the reported sale remained unclear.
However, team selling can add supply to the market and unsettle traders, particularly when prices are already declining. Such activity could prompt other holders to take profits or reduce exposure, adding to downside pressure.
Why did Ethena outflows reach July’s levels?
Beyond the reported team selling, Ethena [ENA] also experienced substantial protocol outflows.
According to DeFiLlama, Inflows fell to -$104.08 million on the 8th of October, indicating net capital withdrawals. Outflows had not reached these levels since July.
During that earlier period, ENA struggled, trading around $0.08. The latest outflows suggested that capital was leaving the protocol, although the data did not establish where it went.
Protocol withdrawals do not directly measure ENA selling. Even so, continued withdrawals could weaken confidence in the project. That left buyers facing both weaker price momentum and concerns about capital leaving Ethena.
Can ENA buyers hold the $0.20 support?
ENA’s Relative Strength Index (RSI) continued declining and stood near 50.64, just above its neutral midpoint.
The reading suggested that buyers’ momentum had weakened. A sustained move below 50 could further support the bearish outlook. Likewise, ENA traded below the 20-day EMA, which stood around $0.227.
If the current pressure persisted, Ethena could test the $0.20 support. Losing that level could open the door to $0.19. However, a daily close above the 20-day EMA could weaken the bearish setup and support a recovery toward $0.25.
Final Summary
- Ethena faced a reported $3.45 million team sale as protocol net outflows reached roughly $104 million.
- ENA’s weakening RSI and loss of its 20-day EMA put $0.20 support in focus.
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