Ethena’s Coinbase custody wallet transferred 290 million ENA worth $26.41 million to a personal wallet with a history of sending tokens to exchanges. As expected, the transaction revived concerns about another round of market distribution because the receiving address previously moved ENA to Binance and Coinbase.
However, traders did not immediately respond with aggressive selling despite the transaction’s size. Instead, market activity suggested participants waited for confirmation before adjusting their positions.
The transfer also arrived while ENA traded near an important resistance zone, increasing attention on whether buyers could absorb any incoming supply.
As a result, the wallet movement shifted focus towards exchange flows and price structure rather than creating an instant bearish reaction across the market.
Spot outflows offset distribution concerns
Despite the large custody transfer, exchange flow data painted a more balanced picture at press time. ENA’s daily spot netflow, for instance, remained negative at -$456.47K, indicating that exchange outflows still exceeded inflows.
The reading suggested that the broader market continued to withdraw tokens instead of sending them to centralized exchanges for immediate selling. Even though the custody transaction raised fresh concerns, aggregate flow data failed to confirm widespread distribution.
In addition, recent sessions showed negative Netflows dominated most observations despite occasional positive spikes.
That trend reduced immediate exchange supply and softened the bearish implications of the 290 million ENA transfer.
Nevertheless, traders would likely require sustained negative Netflows to preserve that advantage because sustained inflows could quickly strengthen selling pressure.
Can ENA break above resistance next?
At the time of writing, Ethena [ENA] was trading at around $0.0913 after extending its recent recovery towards the $0.0955-resistance level. Buyers steadily defended higher lows, allowing price to recover from the $0.0788-support established earlier this month.
Meanwhile, the 14-day RSI climbed to 63.83 while its moving average stood at 52.56, reflecting a hike in buying interest without entering overbought territory.
That improvement suggested that bullish participation increased as the price approached its overhead resistance.
Even so, ENA still traded beneath the stronger $0.1120 resistance. It remains the next major barrier if buyers secure a breakout above $0.0955. Failure to reclaim that level would likely encourage another retest of $0.0788, whereas a confirmed breakout could open the path towards $0.1120.
Where could ENA’s next volatility emerge?
Finally, liquidation data highlighted several leveraged positions surrounding ENA’s press time trading range.
The nearest concentration of short liquidations appeared slightly above $0.093, meaning a successful breakout could force bearish traders to close positions and accelerate buying activity. However, substantial liquidity also clustered below $0.087, creating a downside magnet if the price loses its nearby support.
Those opposing liquidation pockets alluded to leverage being balanced, despite the recent recovery.
Rather than confirming a clear directional bias, the heatmap indicated volatility would likely increase once ENA reaches either liquidity zone.
Traders should probably watch those levels closely because liquidation-driven moves often intensify short-term price swings beyond ordinary spot market activity.
Final Summary
- Buyers approached the $0.0955-resistance while liquidation zones hinted at higher volatility ahead.
