The value of Ethena (ENA), an altcoin backed by Donald Trump-supported World Liberty, has plummeted by up to 10% in the past 24 hours. This downturn is primarily due to a significant movement of the coin to exchanges, an inability to surpass technical resistance levels, and a general decline in the cryptocurrency market. For some time, this altcoin has been battling the pressure from large investors selling off and a decrease in market optimism.
Whale Movements and Investor Psychology in the Altcoin Market
On June 6, a wallet reportedly linked to Mirana Ventures transferred 72.17 million ENA (approximately 21.45 million dollars) to the Binance exchange. This large-scale transfer ignited fears of an impending sell-off, which could exert enormous pressure on the market. The anxiety surrounding this possible sell-off greatly accelerated the price decline.
Data from the past month reveals that major investors have been decreasing their holdings in ENA. The amount of coins held by whale-level investors has reduced by 3.63%, while mid-level investors have seen a 19.15% increase, and smaller investors have increased their holdings by 10.44%. This pattern indicates a scenario where large players are selling off while smaller investors are buying. Additionally, about 94% of existing ENA investors are holding their coins either at a loss or break-even point, adding a psychological element that reinforces the ongoing sell trend.
Technical Indicators Point to ENA’s Struggle
Technically, the ENA coin has failed to maintain the crucial support level of $0.355, falling even below the 50-day simple moving average of around $0.348. A 14% decrease in trading volume, now down to $245 million, further highlights the weakened momentum needed for a price rise. Particularly, the $0.36 to $0.41 range represents a breakeven area for roughly 69.08% of current investors, where any attempt to increase in price may meet significant selling pressure.
While the technical indicators send mixed signals—MXCD histogram shows positivity while the MACD line remains beneath the signal line—overall market conditions remain challenging for ENA. The Fear and Greed Index, a general optimism gauge for the crypto market, has decreased from 65 to 61, still in the “Greed” zone. This week, Bitcoin’s market dominance rose by 2.35%, while altcoins generally dropped. A high 30-day correlation coefficient of 0.78 between ENA and Bitcoin 
$105,000 indicates a direct impact from Bitcoin’s price movements on ENA.
