Ethena (ENA), the innovative protocol creating a synthetic U.S. dollar on the Ethereum network, experienced a significant drop in value as the market sentiment turned bearish.
In the last 24 hours, ENA plummeted by 17%, currently trading at $0.84. Its market cap also took a hit, falling to $1.2 billion, placing it as the 68th largest cryptocurrency.
The daily trading volume for Ethena also decreased by 14.5%, now standing at $618 million.
Recent reports suggest that Ethena Labs faced a security breach, with analysts suspecting a $290k exploit.
Data from Santiment reveals that ENA saw a net outflow of 9.18 million tokens from exchanges in the past day. Exchange inflow dropped by 73.5%, going from 72.89 million ENA to 19.28 million ENA.
Similarly, the exchange outflow experienced a 44% decline, decreasing from 50.72 million ENA to 28.46 million ENA. This trend indicates a decrease in profit-taking by traders and investors, leading to lower price volatility.
Over the past nine days, the number of daily active addresses for ENA has been steadily decreasing, dropping from 20,922 on April 9 to 2,341 active addresses per day currently.
Santiment’s data also shows that the ENA Relative Strength Index (RSI) dropped from 60 to 44 in the last 24 hours. This suggests that Ethena may be slightly undervalued at its current price, potentially signaling a bullish momentum if it continues to rise.
To maintain a bullish trend, ENA’s RSI would need to stay below the 50 mark.
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