Ethena's ENA Squeeze: A Tactical Move to Ignite a Price Rally?

Ethena Labs Continues Major ENA Token Withdrawals

Ethena Labs has recently transferred 25 million ENA tokens—valued at nearly $6 million—from Bybit, marking the latest in a series of substantial withdrawals. Since November 7, the company has moved a total of 405.15 million ENA (worth $96.8 million) from centralized platforms such as Bybit and Coinbase Prime. On-chain analytics reveal that Ethena Labs has been consistently withdrawing between 20 and 25 million ENA tokens daily, suggesting a deliberate accumulation strategy.

Such large-scale transfers from exchanges to private wallets typically reduce the available supply on trading platforms, which can increase price volatility if demand rises. This pattern is often interpreted as a sign of long-term confidence and positioning by the project.

Strategic Moves and Market Impact

Ethena’s ongoing accumulation is part of a broader initiative to limit the circulating supply of ENA, the governance token at the heart of its dual stablecoin system (USDe and USDtb). In previous instances, Ethena Labs withdrew 150 million ENA from exchanges, which coincided with a 13% price jump to $0.30, pushing the token to test significant resistance levels. Analysts have observed that similar accumulation phases by Ethena Labs have historically preceded price rallies, with the latest 12% increase reflecting this trend. The company’s ENA holdings now stand at $88.67 million, reinforcing its commitment to the token’s future growth.

Current Market Sentiment

The market has responded with mixed signals. ENA’s price has stabilized near $0.2624 after gaining 7.97% in the past 24 hours. Technical analysis shows the Relative Strength Index (RSI) has rebounded to 37, indicating the start of renewed momentum, while the token remains above its $0.25 support level. Recent days have also seen intensified outflows from exchanges, with ENA recording a net outflow of $1.85 million. This, combined with increased holdings by major investors, points to growing confidence among large stakeholders who may be anticipating a structural recovery.

Wider Crypto Market Context

Ethena’s actions are unfolding against a backdrop of shifting trends in the broader cryptocurrency market. Spot Bitcoin ETFs have recently ended a four-week streak of outflows, registering $70 million in net inflows, and Ether ETFs have also seen a reversal. Meanwhile, other projects like Irys and Hyperliquid are under scrutiny due to concerns about airdrop concentration and token unlocks, underscoring the sector’s ongoing volatility. Ethena’s approach stands out as a calculated effort to manage supply and enhance long-term value through innovative stablecoin mechanisms and strategic treasury management.

Outlook and Potential Risks

Looking forward, the effectiveness of Ethena’s accumulation strategy will depend on how well the market can absorb the withdrawn tokens. If buying interest continues, ENA may challenge the midline of its descending channel, potentially paving the way for a broader recovery. However, risks remain, particularly with a $52.63 million ENA token unlock scheduled for early December, which could introduce short-term price swings. For now, market participants are closely tracking Ethena’s on-chain movements, weighing the potential impact of its aggressive accumulation against broader crypto market dynamics.