Ethena $101M Token Unlock Sparks Sell-Off — Will Bulls Defend $0.45?

• ENA drops 10% after a $101M token unlock increases market supply.
• Oversold indicators suggest a possible short-term rebound near the $0.45 support zone.
• Futures data shows bearish sentiment, keeping downside risks alive for ENA holders.

Ethena’s ENA is at a critical juncture. A massive $101 million token unlock has rattled investor confidence, sending prices down by 10%. Traders now wonder if this dip signals exhaustion or the start of a deeper decline. The once-steady momentum behind ENA has cooled, leaving bulls in a fight to hold key support levels. With volatility tightening and sentiment shifting, the next move could define where the token heads next.

Trading Activity Slows as Bears Tighten Grip

Recent price weakness reflects a clear drop in trading volumes. Enthusiasm that once fueled Ethena’s rallies has faded, leaving the market quieter than before. As liquidity thins, price movements become sharper, and control often shifts toward sellers. That dynamic explains the current pressure zone forming near the $0.45–$0.47 range. Technical readings add more depth to this picture.

The Stochastic RSI sits near 22, signaling oversold conditions and a potential short-term bounce. However, that optimism clashes with Futures data suggesting otherwise. According to CryptoQuant, taker-sell activity has dominated for over 90 days, showing that leveraged traders continue betting on further declines. This split between oversold charts and bearish derivative sentiment leaves ENA walking a tightrope.

Token Unlocks Add More Weight to the Downtrend

Ethena’s recent unlock event added over 171 million ENA to circulation, valued at roughly $101 million. This sudden supply increase came at a time when demand was already fading. The result was predictable—an amplified sell-off as recipients sold their unlocked tokens. The timing couldn’t have been worse for short-term stability.

Another unlock looms on November 2, releasing 40 million additional tokens worth about $21 million. These incoming tokens could add more short-term volatility if broader sentiment remains negative. Unlocks often create waves of profit-taking, especially among early recipients eager to secure gains. Despite this, some traders view the current weakness as an opportunity.

The wedge support near $0.45 represents a critical battleground. If bulls can defend this zone, momentum could flip quickly. A rebound to $0.55 or even $0.60 remains possible once sellers exhaust their strength. However, failure to hold support might trigger another leg down. Combined with bearish futures bias and soft liquidity, that scenario could deepen losses into November.

Ethena’s sharp drop reflects a perfect storm of token unlocks, fading liquidity, and cautious sentiment. Bulls now face a test at $0.45, a level that separates recovery from further decline. Oversold indicators suggest hope, but futures data tells a cautious story. Whether Ethena rebounds or retreats will depend on how long buyers can withstand the growing weight of new supply.