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Fresh concerns arose after wallets linked to the Ethena team deposited 7.524 million $ENA, worth about $672,000, to Binance. The timing drew attention because the transfers occurred just before more than 267 million $ENA, valued at $23.6 million, approached its scheduled unlock period between the 2nd and 5th of June.
Traders often view exchange deposits as a sign that tokens could become available for sale, especially when they originate from project-related wallets. As a result, sentiment weakened across the market.
The timing also intensified focus on Ethena’s supply dynamics because $ENA has struggled to establish a sustained recovery recently.
Exchange inflows point to rising sell-side risk
Recent exchange flow activity has reinforced concerns surrounding potential supply pressure.
Spot Inflow/Outflow data showed a positive Netflow of approximately $851.52K, indicating that more $ENA moved onto exchanges than left them. Positive netflows often suggest that traders are positioning tokens on trading venues rather than moving them into long-term storage.
Although the latest inflow remained relatively small compared to historical spikes, it aligned with the recent Binance deposits from team-linked wallets. In addition, the shift stood out because $ENA’s broader netflow trend had largely favored outflows over the past several months.
Consequently, the latest reading suggested that market participants may have become more cautious as the token unlock period approached.
Source: CoinGlass
Can $ENA turn support into a recovery?
$ENA continued trading inside its multi-month range between $0.0790 support and $0.1323 resistance, while recent price action showed buyers defending the lower boundary.
After approaching support, the token rebounded to $0.0912, posting a 3.44% daily gain as demand returned near the range floor at press time. This reaction suggested buyers remained active despite concerns surrounding team-linked Binance deposits and the upcoming token unlock.
The RSI also supported the recovery attempt. Although the indicator remained below the neutral 50 level at 38.86, it had rebounded from recent lows and started curving higher.
The shift highlighted that bearish pressure had eased compared to previous sessions. If buyers continue defending support, $ENA could challenge the middle of the range. However, failure to sustain the rebound would place the $0.0790 support zone back under pressure.
Source: TradingView
Short sellers regain the upper hand
Derivatives data revealed growing confidence among bearish traders despite the recent price bounce.
At the time of writing, the OI-Weighted Funding Rate declined to approximately -0.0014%, showing that traders increasingly paid to maintain short exposure.
Negative funding rates generally indicate stronger demand for short positions than long positions. This development aligned with concerns surrounding exchange inflows and the upcoming unlock event.
Furthermore, funding rates had fluctuated around neutral levels throughout recent months, making the latest move notable. While negative funding reflected cautious sentiment, it also highlighted the possibility of a future squeeze if $ENA unexpectedly strengthened.
For now, however, derivatives positioning suggested that traders remained hesitant to bet aggressively on a sustained recovery.
Source: CoinGlass
To sum up, $ENA has entered a critical period as exchange deposits, positive netflows, and negative funding rates have increased focus on upcoming supply expansion.
Even so, buyers have defended the $0.0790 support zone and pushed the price back to $0.0912, while the RSI has started recovering from recent lows.
If demand continues absorbing incoming supply, $ENA could extend its rebound toward higher levels within the range. However, a failure to absorb unlock-related selling would likely place support under renewed pressure.
Final Summary
- Team-linked deposits and rising exchange inflows have increased $ENA supply concerns.
- $ENA has rebounded from support, but unlock pressure remains a key risk.
