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Ethena to unlock 94,19M ENA tokens worth $30.3M or 1.7 percent of its market capital
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MACD and RSI indicate short-term optimism but support near $0.3193 has been under pressure
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A second release on May 5 will release a total of 171.85M ENA. This raises fears about cascading pressure
Ethena’s native ENA token is under significant bearish pressure, which will shape its price prediction as it approaches the large token release planned for May 2, 2020. The release of 94.19 millions tokens (0.63% total supply) will have a major impact on the near-term outlook of ENA.
The unlocking’s estimated value is $30.3m, which is equivalent to 1.7% of ENA’s market capitalization. Token unlocks can often bring new supply into the market, which can lead to a drop in prices if demand isn’t keeping up.
The May 2 unlock is followed by a much larger unlock on the May 5th, releasing 171.85 millions ENA (1.15 % of total supply), worth $55.28million or 3.09% market cap. These two releases back-to-back raise serious concerns regarding near-term pressure on the market.
Technical Analysis: Mixed signals cloud ENA’s price outlook for May 2
ENA has bounced exactly around the 0.618 ($0.3108) level, a key area that often marks strong resistance.
The price is currently trading at $0.3217. This is close to the 0.236 level of retracement at $0.3193. This indicates a modest recovery. Inability to reclaim the $0.3253 level would confirm a local peak and possibly signal further downward movement.
The Relative Strength Index reading is 54.34. This neutral level indicates that the price can move in either direction. The RSI trended upwards recently, which could indicate short-term buying activity related to the unlocking event or a broader rally.
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The MACD line is also above the signal line and the histogram bars have turned green, which is a bullish sign. This crossover may indicate continued upward momentum. However, the MACD line is still hovering near the zero line.
ENA Price Predictions: Scenarios Following May 2 Unlock
Market participants may want to sell tokens or avoid aggressive positions before the $30.3 million of tokens enter circulation on May 2. A larger wave will arrive just three days after that.
This ENA price forecast includes a key downside scenario: If the token breaks through the $0.3193 support level after the May 2, unlock, it is more likely to move towards $0.3108 (0.618 fib) or $0.3068 (0.786).
Related:USDe Operation Shifts to BVI As Ethena Closing German Subsidiary
ENA may reclaim its $0.3253 high if the market sentiment remains stable and buyers absorb unlocked supply. A break above this level could open the door for a move towards $0.335 and beyond.
