Ethena (ENA) has seen a recent price increase of 17% after facing significant losses earlier in the year and a large token unlock event. However, the overall market sentiment towards ENA remains negative, with increased selling activity leading up to the token unlock. The influx of new tokens from the unlock has diluted the value of existing tokens and spooked investors, resulting in a rise in balances held on exchanges and further downward pressure on the price. The actions of long-term holders (LTHs), who have been liquidating their positions, have also negatively affected ENA's momentum and confidence in the asset. Despite the recent price increase, ENA needs to break through the resistance level of $0.434 and sustain higher levels in order to reverse the broader downtrend. If bearish sentiment persists, ENA could decline towards the $0.326 support level and even as low as $0.259. However, a shift in investor sentiment and accumulation at lower prices could lead to a breakout and a path towards $0.602 for long-term recovery.



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