Key Takeaways
What’s impacting the price of ENA?
The current valuation of ENA was weak due to the decreasing volume, potential structure shift, and spot selling.
What are the strong fundamentals?
Ethena’s TVL, active addresses, and solid yield rewards showed strength in the past two months.
The current week that is coming toward us seems to be one for correction across the whole of the cryptocurrency market, except for a few coins.
Ethena [ENA] has been down about 1.6% in the last 24 hours, while the daily volume has taken a hit of about 10 times the price change.
The altcoin is seeing mixed reactions as public and institutional activity goes in opposite directions. The two seem to be varying in their views about the current ENA price, but the fundamentals are strong.
Strong fundamentals
Analysis of the holder metrics on Nansen AI showed mixed signals. Smart Money and public figures added 4.48% and 1.68%. On the other hand, whales and exchanges reduced by 3.43% and 17.45%, respectively.
Arca held about $4.57 million in ENA, indicating their strong conviction in price appreciation. This amount represented about 0.05% of the total supply.
Source: Nansen
More telling, the Total Value Locked (TVL) hit a new peak of $13.88 billion, with $151 million in daily capital inflow. This further confirmed institutional interest in the token.
Additionally, the number of active addresses was rising, with the current figure reaching 32,000.
The demand was also increasing because of its solid yield rewards, which reached the highest since March. The monthly APY was at 0.072.
Most of the fundamentals reflected the movement of Ethena in the past two months, where the price started rising on the 9th of July. However, from mid-August to September, the fluctuation has been flat or rather dipping.
Why is ENA price weak?
Looking at the price chart of ENA on the daily timeframe, a potential double top seemed to be forming. However, for the structure shift to be confirmed, ENA price had to break and hold below the neckline.
If the current level holds, the structure shift may be invalidated. The $0.50 zone acted as the next area of support if $0.60 broke down.
That said, what was behind this price decline? On TradingView, the data showed volume had been shrinking since the 11th of September.
Additionally, about $5.4 million in ENA was moved to CEX exchanges for profit-taking. This ignited selling pressure.
Source: TradingView
Still, the Funding Rate was in the negative territory, suggesting sellers were paying buyers. The current reading of the Funding Rate was at -0.0046%.
However, exchange netflows were easing, opening the room for bullish inflows if the sellers got exhausted.
