- Ethena’s recent announcements failed to shift ENA’s bearish trend.
- Technical indicators still favor selling into short-term rallies.
- A broader Bitcoin-led market rally may be needed to change momentum.
Ethena (ENA) has made several high-profile moves in recent weeks, but the market response has been muted. Despite announcing a custody partnership with Kraken and expanding its stablecoin footprint through a new Solana-based launch, ENA’s price action suggests traders remain cautious. The token’s broader trend continues to favor sellers, with technical signals pointing to weakness rather than a sustained recovery.
Institutional Progress, Limited Market Reaction
Ethena Labs recently confirmed that Kraken Custody will safeguard the assets backing its USDe stablecoin. The decision reflects the protocol’s push to meet institutional standards as it scales. Around the same time, the launch of JupUSD on Solana marked another step in Ethena’s whitelabel stablecoin strategy.
While these developments strengthen Ethena’s infrastructure narrative, they have not translated into upward price momentum for ENA. The token remains well below key resistance levels, underscoring the gap between long-term fundamentals and short-term market sentiment.
ENA’s Long-Term Trend Remains Bearish
On the daily chart, ENA has yet to establish a clear bullish structure. A brief rebound earlier this month failed to hold, and recent losses reinforced seller dominance. Volume-based indicators show sustained distribution, with selling pressure outweighing accumulation for months.
Momentum indicators briefly hinted at strength during a bounce toward the $0.26 area, but that move quickly faded. Since then, signals have slipped back into neutral territory, suggesting neither side has full control — though bulls lack convincing follow-through.
Key Levels Traders Are Watching
Short-term price behavior points to tactical opportunities rather than trend reversals. Recent dips cleared clusters of leveraged long positions near the $0.21 zone before rebounding modestly. Above current levels, liquidity is building near $0.23 and again closer to $0.24.
These areas may attract price in the near term, but they also align with zones where sellers have previously stepped in. A move toward $0.24, in particular, could invite renewed bearish pressure unless broader market conditions improve.
For ENA to break out of its current stagnation, a wider shift in crypto sentiment may be required. A decisive move higher in Bitcoin — especially a push into six-figure territory — could lift risk appetite across altcoins. Until then, ENA appears vulnerable to selling into rallies rather than sustaining them.
Also Read: Iran’s Currency Is Failing—Here’s Why Bitcoin Keeps Entering the Conversation
Ethena continues to build quietly, focusing on custody, compliance, and stablecoin expansion. Yet ENA’s price tells a different story. Without a clear catalyst or a broader market tailwind, the token remains stuck in a downtrend, with traders favoring caution over conviction.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. CoinBrief.io is not responsible for any financial losses.
