Ethena Struggles Below Critical Resistance as 40M ENA Token Unlock Looms – Bulls Beware?

Ethena's price action hits a wall just shy of a major resistance level—right as 40 million ENA tokens prepare to flood the market. Traders are eyeing the charts like hawks, waiting to see if this is a classic 'sell the news' setup or just another fakeout in crypto's endless drama.

The unlock could spark volatility: Will whales dump or double down? History suggests unlocks rarely go unnoticed—price tends to move, often violently. But hey, since when has crypto followed the script?

Meanwhile, the 'stablecoin yield narrative' that propelled ENA earlier this year looks shakier than a DeFi protocol's 'robust' audit. If the token stumbles post-unlock, expect the usual chorus of 'this is healthy consolidation' from bagholders.

Pro tip: Watch the order books, not the hopium tweets. And maybe keep some dry powder—because nothing makes crypto traders happier than catching a falling knife (until it keeps falling).

While momentum and MACD indicators show early signs of recovery, they are not strong enough to reverse the overall trend. The Bollinger Bands’ narrowing indicates less volatility. The price is still trading NEAR the lower band, which is a warning sign that may indicate a sharp breakdown or a reversal based on volume confirmation.

If ENA manages to hold above the $0.25 support zone and absorbs today’s token unlock without a breakdown, renewed volume could drive a move back toward $0.28. A close above that level WOULD open the path to retest the $0.30–$0.32 range. 

Failure to hold $0.25, particularly under continued low volume and increased token circulation, could expose ENA to further downside. A decisive break below $0.245 would weaken the structure, putting the $0.22–$0.23 zone in focus and dragging sentiment with it.