Ethena's ENA Token Braces for Impact as Massive Unlock Looms

40 Million Tokens Set to Hit the Market, Stirring Volatility Fears

Buckle up, crypto fans! Ethena's native token, ENA, is feeling the heat as a colossal token unlock barrels towards us. Scheduled for June 2, this unlock is set to unleash a whopping 40.63 million ENA tokens—worth around $12.73 million—into the wild. That's a mere 0.7% of the circulating supply, but it's enough to make investors sweat. We've seen it before: even tiny unlocks can send prices into a tailspin as everyone braces for the selling pressure from those freshly minted tokens.

So far, only 38% of ENA's total stash has been set free. Right now, Ethena's got 5.82 billion tokens cruising around out of a possible 15 billion. That gives us a market cap of about $1.78 billion and a fully diluted valuation that's soaring past $4.56 billion. Big numbers, but can ENA hold steady?

As we speak, ENA's down about 2% in the last 24 hours, trading at $0.304. It's been on a downward spiral since late April, and this latest dip screams caution ahead of the unlock. ENA's now flirting dangerously below key support levels, with technical indicators sending mixed vibes.

The relative strength index is chilling at 40.4, showing neutral momentum but teasing the edge of oversold territory. Meanwhile, a bearish crossover in the moving average convergence divergence hints that the momentum's fading fast. ENA's also hanging out below the 10, 20, 50, and 100-day EMAs and SMAs, all pointing to a downward trend.

After a brief squeeze, the Bollinger Bands are starting to stretch out again, hinting at more volatility on the horizon. The price is now testing the lower band, which could either hold as support or crumble, sending ENA into a steeper dive.

If ENA can't cling to the $0.30 mark, we might see it slide further into the $0.27–$0.25 range, especially if those unlock participants decide to sell when the market's weak. But hey, there's hope! A short-term bounce back could happen if ENA breaks above the 20-day EMA and claws its way back to the $0.32–$0.34 range. That would probably need some blockbuster ecosystem news or a general market sentiment pick-me-up.

Despite the short-term jitters, Ethena's not slowing down. Over 900 million users now have a taste of Ethena's decentralized finance thanks to its yield-bearing USDe stablecoin hitting the TON blockchain in May. Plus, the ongoing testnet for EtherealDEX—a decentralized exchange powered by sUSDe—is looking hot, with a full launch expected later this year.

Hold on tight, crypto enthusiasts—Ethena's ENA token is in for a wild ride!