Ethena Team Activity Raises Concerns About Further Selling

Key Points

The reported team sale of $3.45M on OKX, coupled with substantial protocol outflows, has raised concerns about the stability of the Ethena [ENA] project.

Ethena's Recent Price Drop

Ethena [ENA] faced rejection at $0.26 after the broader market reversed on the 4th of October. Since then, the altcoin has remained under strong downside pressure, falling to a low of $0.21. At the time of writing, Ethena traded around $0.219, down 6.57% over the past 24 hours.

Protocol Outflows Continue

Protocol outflows, as measured by DeFiLlama, reached -$104.08M on the 8th of October, indicating net capital withdrawals. This level of outflows had not been seen since July, when ENA struggled to find traction.

RSI Declines and Bearish Momentum

Ethena's Relative Strength Index (RSI) continued to decline, standing near 50.64, just above its neutral midpoint. This suggested that buyers' momentum had weakened, further supporting the bearish outlook.

Support and Resistance Levels

If the current pressure persists, Ethena could test the $0.20 support level. Losing that level could open the door to $0.19. However, a daily close above the 20-day EMA could weaken the bearish setup and support a recovery toward $0.25.

Conclusion

The combination of team selling and protocol outflows has raised concerns about the stability of the Ethena [ENA] project. As the price drop continues, it will be crucial to monitor the RSI and other technical indicators to determine the potential direction of the altcoin.