Ethena Stumbles as $12 Million Token Unlock Sparks ENA Price Jitters

Another day, another token unlock shaking crypto markets—this time it’s Ethena taking the hit. A $12 million flood of newly freed ENA tokens sends traders scrambling as dilution fears mount.

When will projects learn? Massive unlocks rarely end well for retail bagholders. Yet the cycle repeats—VCs cash out, teams celebrate, and hodlers watch their positions bleed. Just another Tuesday in decentralized finance.

At 40.4, the relative strength index indicates neutral momentum but is close to entering the oversold territory. A bearish crossover in the moving average convergence divergence indicates waning momentum. Further supporting the downward trend, ENA is trading below several major moving averages, such as the 10, 20, 50, and 100-day EMAs and SMAs.

After a brief squeeze, the Bollinger Bands are beginning to widen once more, suggesting that volatility may be increasing. Price action is now testing the lower band, which could either act as support or open the door to a sharper decline if broken.

If ENA fails to hold the $0.30 level, a further slide toward the $0.27–$0.25 range is possible, especially if token unlock participants sell into weakness. On the flip side, a short-term recovery might be triggered if ENA can break above the 20-day EMA and reclaim the $0.32–$0.34 range. To support this, there WOULD likely need to be strong ecosystem news or a recovery in overall market sentiment.

Despite the short-term uncertainty, Ethena continues to build. More than 900 million users now have access to Ethena’s decentralized finance thanks to the integration of its yield-bearing USDe stablecoin into the TON blockchain in May. The ongoing testnet for EtherealDEX, a decentralized exchange powered by sUSDe, also shows promise, with a full launch expected later this year.