In the crypto market, whales play a significant role. Fellow investors often follow the bigger holders for potential opportunities, which is why their decision could heavily impact a digital asset’s price performance. One such influential whale is on the brink of changing the Ethena price trajectory, as it has recently unstaked 17.875M ENA, raising concerns. Let’s discuss what will happen if this holder sells these many tokens.
Crypto Whale Unstakes 17.875M ENA: Ethena Price At Risk?
This prominent whale is making headlines in the crypto market as it recently unstaked 17.875 million ENA tokens, equivalent to $8.78M per current price. According to the Spotonchain X post, this move sparks concerns of a potential sell-off. The whale has deposited all these on Binance, which hints at selling sentiments.
Interestingly, this selling decision would impact the ENA price in the short term, but the whale would also face heavy losses. As the data presents, the trader bought these tokens at an average price of $1.67, which is towards the high end, and the current scenario is on the low end, as the token is struggling on the chart.
With that being said, the trade would face a $12.09M loss, losing almost 60% of the initial investment. Moreover, it could introduce selling sentiments, impacting the token’s worth.
Will Ethena Price Crash With 17.875M ENA Sell?
The addition of the 17.875M ENA to Ethena’s circulating supply seems alarming, but the reality is less dramatic. Though it is undeniable that such a sell-off has the potential to influence the Ethena price, the impact will be minor.
ENA is currently trading at $0.4989 and has significantly recovered since its earlier crash due to turbulence in the altcoins market. Additionally, its 24-hour trading volume is $270.86M after an 18% surge, showcasing investor interest. As a result, the token might witness limited volatility.
However, the crypto exchange where these tokens will be sold might witness higher slippage due to increased liquidity. Moreover, small-scale investors might follow the selling sentiments, but that will be short-term.
On analyzing the ENA/ USDT daily charts, its price movement indicated the possibility of a dip near the $0.428 support level. However, the recovery might follow soon, with the price target being $0.502, $0.617, and eventually $0.808.
Key Levels To Watch
The ENA price trajectory could take any turn amid the ongoing market turbulence and whale dumping, so investors must watch out for these key levels to ensure better decision-making.
Key support levels: $0.3430, $0.4280, and $0.4530.
Key resistance levels: $0.6710 and $0.8082.
Buying opportunity: A drop to the $0.428 support level may become ideal before the token followed recovery retails.
Ethena Price Prediction: A bounce from the current support level toward the resistance could push it to $0.6710 before attaining $0.8082. However, if the key support is not held, the price may decline to as low as $0.3430.
What’s Next?
Ethena was among the top cryptos in the market but is also struggling with turbulence. It currently trades at $0.4989 and has declined 67% from the ATH of $1.52. However, with a shallow dip, the key support of $0.4280 could introduce a better recovery once the buying pressure increased.
With that, the Ethena price may rally to as high as $8.8082. Additionally, even if the aforementioned crypto whale dumped its 17.875M ENA, the impact will be limited on the price. Investors must watch the key levels and build their strategies accordingly.
The post How Would Ethena Price React If This Whale Dumped All 17.875M ENA? appeared first on CoinGape.
