Will Ethena [ENA] start 2025 with a 50% drop to $4.5? Assessing…

• ENA has shaped a head and shoulders sample on its value chart, highlighting elevated promoting exercise.
• An upcoming ENA token unlock is anticipated to amplify this strain, probably driving the asset’s worth even decrease.

Over the previous week, Ethena [ENA] has already shed 11.89% of its market worth, with losses extending into the final 24 hours because the token dropped one other 2.01%.

Given the present market construction and prevailing bearish traits, ENA is more likely to face additional declines, with the worth presumably establishing new lows.

Head and shoulders sample rising on ENA chart

On the 4-hour chart, ENA seemed to be forming a head and shoulders sample, a bearish technical sign. The sample is sort of full, probably only one candlestick away from affirmation.

If the sample absolutely types, ENA may enter one other bearish section. A drop under the help degree, generally known as the neckline, would possible set off a big decline in value.

The chart signifies that ENA may fall to $0.454, representing a steep 49.10% drop from its present value of $0.92. With no robust help to soak up the promoting strain at this degree, the token may face even deeper losses.

Supply: TradingView

Market exercise has additional contributed to the bearish outlook, with merchants intensifying the continuing promoting strain.

Promoting strain intensifies within the by-product market

The by-product market was experiencing excessive promoting strain, with sellers dominating buying and selling exercise.

As of press time, the Funding Price stood at -0.0019%, firmly in detrimental territory.

A detrimental Funding Price signifies that brief merchants are paying a premium to keep up their positions, reflecting a bearish sentiment available in the market.

Supply: Coinglass

Ought to the Funding Price decline additional, ENA’s value may more likely to face further downward strain, probably reaching $4.5 as indicated on the chart.

ENA’s Open Curiosity has additionally dropped over the previous 24 hours, reducing by 2.43% to $558.53 million. This means a discount in energetic positions, as market contributors shut trades amid mounting promoting strain.

This habits is commonly a present of efforts to keep away from liquidation and restrict additional losses, a key signal of diminishing confidence available in the market.

The Alternate NetFlow knowledge helps this bearish outlook. Over the previous 4 days, there was a noticeable lower within the quantity of ENA tokens leaving exchanges.

Supply: Coinglass

A continued discount in outward token flows signifies that extra ENA tokens are remaining on exchanges, rising the obtainable provide. This surplus can add to promoting strain and additional drive down the asset’s value.

ENA provide set to extend

In keeping with Layergg, 12 million ENA tokens are scheduled to be unlocked and launched into the market on the first of January. This can considerably improve the circulating provide of ENA.

Learn Ethena’s [ENA] Worth Prediction 2025–2026

The extra provide, mixed with the prevailing bearish sentiment, may speed up a value decline if there’s inadequate demand to stabilize the market.

This state of affairs seems more and more possible for ENA, given present market situations.