Ethena has been struggling over the past day, slipping back toward the $0.32 range. The energy in the market has clearly shifted, and sellers are taking control.
So why is the ENA price dropping right now? There are a few important reasons, and they all showed up at the same time.
What you'll learn 👉
Token Unlocks Are Adding Pressure
One of the biggest factors behind the current decline is the latest token unlock. On November 5, more than 171 million ENA tokens were released into the market, that’s roughly $55 million worth at today’s prices. And this isn’t a one-off thing. Ethena has monthly unlocks scheduled all the way through 2027.
Anytime a large amount of new supply hits the market, investors start worrying about dilution. Some recipients might decide to sell right away, especially core contributors or early investors who finally have liquidity.
That fear alone is enough to drive the ENA price lower as holders try to get ahead of the sell pressure. We already saw how the market reacted last time. After the unlock in early October, ENA dropped more than 30%. Traders haven’t forgotten that.
The ENA Technicals Aren’t Helping Either
On the chart, the ENA price recently fell below several key support levels. The price is trading under important moving averages, which usually signals weakness.
It also broke below a crucial Fibonacci retracement level around $0.347, confirming that sellers still have the upper hand.
Momentum indicators agree. RSI has slipped into oversold territory, which means the decline may be overextended, but it doesn’t guarantee a rebound yet. ENA needs buyers to step up and show that this support matters.
If the ENA price continues to slide, the next major zone to watch is around $0.28. A break below that area could invite another big move down.
Read Also: Time to Accumulate More Ethena (ENA)? Why a Big Bounce Might Be Coming
Weakness Across Altcoins Is Making It Worse for Ethena
ENA downside isn’t happening in isolation. Most altcoins are under pressure right now. Crypto as a whole has fallen nearly 8% this week, while Bitcoin has held up much better. Investors are rotating into BTC as a safer play while markets are uncertain.
Trading volume on ENA has also dropped nearly 30% lower over the past 24 hours. When there aren’t enough buyers, even small sell-offs can accelerate quickly. That’s exactly what we’re seeing now.
So even if Ethena’s fundamentals remain strong, the broader market sentiment is pulling it lower too.
What Happens Next for ENA?
The picture isn’t all negative. The ENA price is getting close to levels where it has bounced before. If the token can stay above $0.28 and stabilize, a recovery could form once the market settles down. Oversold readings also suggest sellers might be running out of momentum.
But for now, the reality is simple: New supply hit the market. Charts broke lower. Altcoins are struggling across the board. All these factors together explain why Ethena is down today.
If confidence returns to the altcoin market, ENA has room to move up again, but buyers will need to step in first before any real bounce develops.
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