Token price of Ethena (ENA) surges by 13% following a 28% increase in trading volume.
Ethena (ENA) Bucks Trend During Upcoming Token Unlock
In an unexpected turn of events, the upcoming token unlock of Ethena (ENA) is not causing the anticipated price drop. Scheduled for August 6, the unlock represents about 2.70% of the cryptocurrency's market cap, releasing approximately 171.85 million ENA tokens worth around $103.02 million at current prices.
Despite concerns of increased circulating supply leading to a price decrease, ENA prices surged in anticipation and after the unlock. On August 4-8, 2025, ENA reached a local high of $0.628, marking a 13% increase.
The surge in price was accompanied by a significant rise in trading volume, which increased by about 28% to $1.14 billion. Open Interest, a measure of active derivatives contracts, also saw an increase of roughly 17%. These indicators suggest strong market participation and confidence.
Large holders, or whales, have been accumulating ENA tokens, increasing their holdings by over 1 billion tokens recently. This bullish sentiment from institutional or large investors despite the token unlock event is a positive sign.
Technically, ENA is trading above key moving averages (5, 10, and 20-day MAs), showing bullish trends. The RSI is around 63.95, considered modestly bullish, and momentum oscillators suggest potential for further upside targeting $0.70 and possibly $1.00.
In addition, ENA has achieved a new all-time high market cap of $3.83 billion in early August 2025, surpassing its previous peak from January 2025. This supports the idea of robust investor confidence during token unlocks.
Looking ahead, if ENA can hold support in the $0.50-$0.55 range, further upside may be possible. The Long/Short Ratio for ENA on Binance, more pronounced among accounts and top traders, indicates that market participants are predominantly betting on upward price movement.
However, it's worth noting that Spot Netflow for Ethena (ENA) has remained negative for eight consecutive days, indicating coins moving off exchanges into private wallets. This could suggest a shift in sentiment or accumulation by long-term holders.
In summary, Ethena (ENA) has not only withstood the pressure of large token unlocks but has demonstrated price gains, increased trading volume, and positive technical signals during this period. The upcoming unlock event on August 6, 2025, involving 171.85 million tokens worth about $103 million, did not negatively impact price; instead, the market responded bullishly, with expectations for further upward movement.
- Amid the upcoming cryptocurrency token unlock of Ethena (ENA), traditional finance institutions might want to reconsider their investment strategies, as strong market participation and confidence have led to price increases and positive technical signals.
- The National Stock Exchange (NSE) could potentially expand its cryptocurrency investment offerings, taking into account the robust investor confidence during token unlocks, as evidenced by Ethena (ENA)'s price surges and increased trading volume.
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