Ethena Price Prediction: ENA Price Experiences Huge 22% Drop in 7 Days, What’s Next?
Flight to safety hits ENA hard as USDe suffers strong outflows – Ethena price prediction warns of a 50% drop after losing major support.
ENA has gone down by over 22% in the past week and has recently retested its all-time low. One trader favors a bearish Ethena price prediction as the token has dropped below a key weekly support.
Since August 2024, data from DeFi Llama shows that the protocol’s earnings have been steadily declining, moving from $4 million back then to just $50,000 in November as mint fees have declined sharply.
Ethena’s USDe circulating supply has suffered a strong setback, declining from a peak of $15 billion in mid-October to just $6.7 billion at the time of writing.
It seems that, during times of market turmoil, investors prefer to rely on well-established names in the stablecoin space like Tether’s USDT and Circle’s USDC. Hence, this protocol could be suffering the consequences of a flight-to-safety move.
Crypto analyst ChiefraT shared an interesting chart that shows a bearish breakout below Ethena’s long-standing weekly support.