Multicoin Capital moves 56 mln Ethena: Will ENA recover from this sell-off?

Ethena [ENA] fell 14.28% to $0.0907 as Multicoin Capital moved 56.1 million ENA worth $5.28 million through Galaxy Digital and BitGo. Multicoin Capital’s latest transaction has drawn fresh attention to Ethena’s market structure. 

According to Onchain Lens, the firm deposited 56.116 million ENA valued at approximately $5.28 million into Galaxy Digital through BitGo. 

The transfer arrived during a period of heightened weakness for ENA, which had already lost over 14% in the previous 24 hours. 

Large institutional transfers often attract scrutiny because they can precede custody changes, OTC deals, or exchange-related activity. However, the transaction alone did not confirm immediate selling intentions. 

Instead, it introduced uncertainty around institutional positioning as traders attempted to determine whether the move reflected strategic portfolio management or preparations for further market activity. 

Exchange outflows continue supporting supply squeeze

While institutional transfers dominated headlines, Spot flow data showed a different trend beneath the surface.

ENA recorded a net outflow of approximately $3.52 million on the 5th of June, extending a pattern of tokens leaving exchanges. 

Persistent negative netflows typically indicate that more assets have exited trading venues than have entered them. 

As a result, immediately available exchange supply has continued shrinking. The outflow trend remained visible throughout much of the recent period despite broader market weakness. 

Such behavior often suggests that some participants preferred holding rather than positioning for immediate liquidation.

Can ENA hold its crucial floor?

Price action remained confined within a range that has defined trading behavior since February. ENA revisited the lower boundary near $0.079 after another wave of selling pressure pushed the asset lower. 

The daily chart showed repeated reactions around this zone, reinforcing its importance as a major support area. Meanwhile, resistance remained established around $0.132, creating a wide trading corridor that has contained price movements for several months. 

Recent attempts to rally toward the upper boundary lost strength before reaching resistance. As a result, sellers regained control and forced another retreat toward support. 

The Relative Strength Index recovered to 41.20 after previously approaching oversold territory during the recent decline. 

Its moving average stood near 39.72, indicating that buying interest had started returning after the sharp sell-off.

The current structure suggests that market participants continued treating the range as the dominant framework until a decisive breakout emerged.

Why are Binance traders still bullish?

Derivatives positioning presented a striking contrast to recent price performance. Binance top trader data showed that 72.19% of accounts remained long, while only 27.81% held short positions. 

This pushed the Long/Short Ratio to 2.60, one of the strongest bullish readings in recent weeks. Such positioning indicated that professional traders largely anticipated recovery despite the correction. 

However, concentrated bullish exposure can create additional volatility whenever price moves against consensus expectations. 

Recent declines have not significantly altered trader conviction, suggesting that many participants still viewed current levels as attractive.

Can ENA reclaim $0.132?

ENA’s setup currently favors a recovery over a deeper decline. Spot outflows of $3.52 million continued reducing exchange supply, while Binance top traders remained heavily bullish with 72.19% long positions. 

Although the price retested the $0.079 support, the RSI recovered from oversold conditions, suggesting selling pressure had eased. If buyers continue defending support, ENA would be more likely to revisit the $0.132 resistance than break lower. 

Final Summary

• ENA outflows continue reducing exchange supply despite recent price weakness.
• Binance traders remain strongly bullish as ENA defends long-term support.