Ethena Team Sold Tokens Worth $3.45 Million

The Ethena [ENA] team conducted a token sale amounting to $3.45 million amid record outflows from the protocol, which reached approximately $104 million. In early October, following a market reversal on the 4th, Ethena faced resistance at $0.26, exacerbating pressure on the altcoin, which fell to $0.21. At the time of writing, Ethena was trading at around $0.219, marking a 6.57% decline over the previous 24 hours. According to X user Nazoku, the Ethena team sold tokens worth $3.45 million on OKX. There was also a report of an earlier transfer of nearly 400 million tokens from the team wallet to a proxy contract, which occurred five days before the mentioned post. These tokens were subsequently transferred through an intermediary wallet before being sold on OKX. The reasons behind the team's token sale remain unclear, but such actions could increase market supply and destabilize traders, especially when prices are already declining.

Ethena's outflows also reached levels not seen since July, when the protocol experienced a significant decline. According to DeFiLlama, as of October 8, outflows amounted to –$104.08 million, indicating net capital withdrawals. This level of outflow had not been seen since July, when ENA was trading around $0.08. These recent outflows indicate capital exiting the protocol, although it is unclear where exactly it is going. However, outflows from the protocol do not directly measure ENA sales. Continued outflows could weaken confidence in the project, posing risks to buyers related to both weakening price momentum and capital withdrawal threats.

Regarding support, the relative strength index (RSI) for ENA continues to decline and is around 50.64, slightly above the neutral level. This value indicates weakening buying momentum. A break below 50 could exacerbate the bearish outlook. ENA is also trading below its 20-day exponential moving average (EMA), which is around $0.227. If the current pressure continues, Ethena may find support at $0.20. Losing this level could pave the way to $0.19, but a daily close above the 20-day EMA could weaken the bearish scenario and support a recovery to $0.25.