Ethena’s Coinbase custody wallet recently shifted 290 million ENA tokens, valued at $26.41 million, to a personal address known for moving tokens to exchanges like Binance and Coinbase. This unusual transfer immediately set alarm bells ringing among traders worried about another round of token distribution hitting the market.
Curiously, despite the transaction’s size and the recipient’s history, traders didn’t rush to dump their holdings. Instead, they seemed to hold off, waiting for clearer signals before making moves. The timing added fuel to the fire, with ENA hovering near a key resistance zone, sparking speculation on whether buyers could absorb potential selling pressure.
Looking beyond the headline, exchange flow data offers a more measured view. ENA’s net exchange flows remained negative by $456,470, meaning more tokens left exchanges than entered them. This trend suggests that, despite concerns, the broader market continues to pull tokens out rather than pushing them onto centralized platforms for quick sale.
The overall flow pattern, marked by mostly negative netflows despite some spikes, dampens fears of an immediate price drop from the custody transfer. However, traders are likely watching closely, since a reversal with sustained inflows could quickly shift the selling dynamics.
Price-wise, ENA traded near $0.0913 at the time, climbing toward a resistance level at $0.0955. Buyers have been firm in defending recent lows around $0.0788. Technical indicators support growing buying interest: the 14-day RSI rose to 63.83, comfortably below overbought territory, signaling steady demand as the token tests overhead resistance.
Still, a stronger resistance awaits at $0.1120. If ENA manages to break past $0.0955 convincingly, it could open the door for a run toward that next hurdle. Failing to hold the current gains might pull the price back toward the support zone near $0.0788.
On the trading front, liquidation data showed clusters of leveraged short positions just above $0.093. A breakout above this level could trigger forced buy-ins, potentially accelerating any upward momentum.
