Ethena (ENA) before a crucial turning point: Will the price experience a breakdown at the 0.60 USD mark or break out beyond it?

This week seems to open up a correction phase for the entire crypto market, except for a few coins that maintain stability.

Ethena (ENA) has recorded a decrease of about 1.6% in the past 24 hours, while trading volume has plummeted sharply, nearly 10 times compared to the price volatility.

Notably, ENA is facing mixed reactions: the flow of funds from individual and institutional investors is diverging in two different directions. Although opinions on the price trend vary greatly, the fundamentals of this altcoin are still considered quite solid.

Solid foundation

Data from Nansen AI shows a rather fragmented picture. The Smart Money group and some influential individuals have increased their holdings by 4.48% and 1.68%, respectively. In contrast, whales and exchanges have reduced their ownership by 3.43% and as much as 17.45%.

A notable highlight is that the Arca fund is currently holding approximately 4.57 million USD ENA, equivalent to 0.05% of the total supply, indicating strong confidence in the growth potential of this token.

Source: NansenMeanwhile, the total value locked (TVL) has just set a new record at 13.88 billion USD, with an average of 151 million USD flowing in each day — a sign of growing interest from institutions. The number of active addresses has also increased, reaching 32,000.

The demand for ENA continues to be strengthened by attractive yield rewards, reaching the highest level since March. The monthly APY yield is 0.072.

Overall, the fundamental factors over the past two months have clearly reflected the developments of Ethena: the price started to rise from July 9, but from mid-August to September, the trend has stagnated and even showed signs of decline.

Why has the price of ENA weakened?

Observing the ENA price chart on the daily frame, it can be seen that a double top pattern is beginning to form. However, for this pattern to be confirmed, the price needs to break and maintain below the neckline (.

If the current level continues to be held, the double top scenario may be invalidated. However, in the case that the 0.60 USD area is breached, the 0.50 USD area will become the next important support zone.

![])https://img-cdn.gateio.im/webp-social/moments-fbb4a4317466d08eee484505398f0ef4.webp(Source: TradingViewWhat is behind this weakening trend? Data from TradingView shows that trading volume has sharply decreased since September 11. At the same time, about 5.4 million USD ENA has been moved to centralized exchanges )CEX( to take profit, increasing selling pressure.

Additionally, the funding rate is currently at a negative -0.0046%, reflecting that the bears are paying fees to the bulls. However, the net cash flow on the exchange shows signs of cooling down, opening up opportunities for demand to enter if selling pressure continues to weaken.

SN_Nour