Ethena (ENA) Price Drops Nearly 2% Amid Falling Demand
Ethena (ENA) fell nearly 2% on Tuesday. This extends its losses this week to almost 5%. The drop is linked to lower demand from both on-chain users and retail traders. This could lead to further price declines for the synthetic Dollar token.
Lower Demand Affects Ethena’s TVL and Futures Market
Since the market crash on October 10, Ethena’s Total Value Locked (TVL) has steadily decreased. Data from DeFiLlama shows TVL fell from $14.818 billion on October 10 to $10.206 billion. Users continue to withdraw or redeem their contracts.
This capital outflow may reduce liquidity and fees for Ethena. This in turn could hurt demand for the ENA token.
Retail interest is also weak. According to CoinGlass, ENA futures Open Interest (OI) dropped 8.65% in the last 24 hours. The OI now stands at $727.49 million. This suggests traders are limiting their risk in the derivatives market.
Technical Outlook: Ethena Faces Key Support Levels
Ethena is trading below the $0.50 psychological level. It is nearing a local support trendline formed by lows on October 12 and October 23, just above $0.46.
If the price continues to fall, Ethena could drop below this trendline. The next support is the S1 Pivot Point at $0.4459.
Technical indicators show bearish momentum. On the 4-hour chart, the Moving Average Convergence Divergence (MACD) crossed below its signal line. This signals renewed selling pressure. The Relative Strength Index (RSI) is at 53, close to the midline, indicating weaker buying interest.
On the upside, Ethena must rise above $0.50 to stabilize. Closing above $0.5343 is crucial to shift to an upward trend. Key resistance levels for a rally are the R2 and R3 Pivot Points at $0.5817 and $0.6453.
