Whales move into action as Ethena (ENA) price shows recovery signs

Ethena (ENA) price is demonstrating a promising recovery, breaking out of a seven-week downtrend that had constrained its performance.

This reversal comes after ENA successfully emerged from a falling wedge pattern; a technical formation often seen as a bullish signal.

The breakout signifies a potential end to the prolonged correction phase, sparking renewed interest among investors.

Ethena (ENA) whale activity surge

Significantly contributing to this recovery is the notable activity from large holders, commonly referred to as whales.

According to Spot On Chain, over the past week, three new multisignature wallets have withdrawn a total of 43.19 million ENA tokens, valued at approximately $35.68 million, from major exchanges Gate.io and Bybit.

This massive withdrawal correlates with a 28% surge in ENA's price, resulting in these wallets holding unrealized profits of around $2.05 million.

Such token movements suggest a growing confidence in ENA's potential among substantial investors.

Besides whales’ activity, the approval of a Spot ETH ETF by the SEC has bolstered Ethereum, creating a favorable environment for Ethereum-related tokens like Ethena (ENA). The approval has provided additional buying pressure, aiding ENA's decisive breakout from its previous pattern.

Ethena price analysis

The 20-day Exponential Moving Average (EMA) has flipped to become dynamic support, reinforcing the near-term bullish trend.

Additionally, the Average Directional Index (ADX) rising at 12% indicates strong momentum among recovery buyers, suggesting potential for further gains.

At press time, Ethena (ENA) was trading at approximately $0.851 and if the current momentum persists, price projections estimate potential rallies to $1.18 and possibly $1.5.

The intraday trading volume of $555.2 million, reflecting an 8.9% gain, underscores robust market interest and trading activity.