Ethena (ENA) fell 14.28% to $0.0907 as Multicoin Capital transferred 56.1 million ENA worth $5.28 million via Galaxy Digital and BitGo. Multicoin Capital’s latest transaction has brought new attention to Ethena’s market structure.
According to Onchain Lensthe company deposited 56.116 million ENA worth approximately $5.28 million into Galaxy Digital via BitGo.
This transfer comes in a period of increased weakness for the ENA, which had already lost more than 14% over the previous 24 hours.
Large institutional transfers often attract increased scrutiny because they may precede changes in custody, over-the-counter transactions, or exchange-related activities. However, the transaction alone did not confirm immediate sales intentions.
Instead, it introduced uncertainty around institutional positioning as traders tried to determine whether this move reflected strategic portfolio management or preparation for new market activity.
Currency outflows continue to support supply compression
While institutional transfers grabbed the headlines, data on one-off flows showed a different pattern beneath the surface.
ENA saw a net outflow of approximately $3.52 million on June 5, continuing the trend of tokens leaving exchanges.
Persistent negative net flows generally indicate that more assets are moving out of trading venues than in.
As a result, the readily available foreign exchange supply continued to decline. The trend toward capital outflows has remained visible for much of the recent period, despite broader market weakness.
Such behavior often suggests that certain players preferred to hold rather than position themselves for immediate liquidation.
Can the ENA hold its crucial floor?
Price action has remained confined within a range that has defined trading behavior since February. ENA revisited the lower boundary near $0.079 after another wave of selling pressure pushed the asset lower.
The daily chart shows repeated reactions around this area, reinforcing its importance as a major support zone. Meanwhile, resistance remained established around $0.132, creating a wide trading corridor that contained price movements for several months.
Recent attempts to rally towards the upper boundary lost strength before reaching resistance. As a result, sellers regained control and forced another pullback towards support.
The Relative Strength Index recovered to 41.20 after approaching oversold territory during the recent decline.
Its moving average settled near 39.72, indicating that buying interest has started to return after the heavy selling.
The current structure suggests that market participants continued to view the range as the dominant framework until a decisive breakout appeared.
Why are Binance traders still optimistic?
The positioning of derivatives presents a stark contrast to recent price action. Data from Binance’s top traders showed that 72.19% of accounts remained long, while only 27.81% held short positions.
This pushed the Long/Short ratio to 2.60, one of the strongest bullish values in recent weeks. Such positioning indicates that professional traders largely anticipate a recovery despite the correction.
However, concentrated bullish exposure can create additional volatility whenever prices move against consensus expectations.
Recent declines have not significantly changed traders’ conviction, suggesting that many participants still view current levels as attractive.
Can ENA recover $0.132?
The configuration of the ENA currently favors a recovery rather than a deeper decline. Spot outflows of $3.52 million continued to reduce the exchange supply, while top traders on Binance remained strongly bullish with 72.19% long positions.
Although price retested the $0.079 support, the RSI has recovered from oversold conditions, suggesting that selling pressure has eased. If buyers continue to defend their support, ENA would be more likely to revisit the $0.132 resistance rather than breaking lower.
Final summary
- Capital outflows from the ENA continue to reduce the supply of foreign exchange despite recent price weakness.
- Binance traders remain strongly optimistic as ENA defends its long-term support.
