【An 85% drop is not a bottom-fishing signal, it’s a trap signal】
A lot of people see ENA drop 85% from its peak and immediately get excited: It’s so cheap now, time to buy the dip?
Wrong.
Let me run the numbers for you. What was the market like at this time last year? What’s the market like now? BTC crashed from 69k, and the entire altcoin market got wiped out three times over. ENA dropping 85% is not strange at all. The question is — what reason does it have to go back up?
The situation right now is very clear: price is stuck at 0.2291, up 2.2% in the past 24 hours. Sounds decent, right? But seven days ago it was still around 0.26. A 12% drop in a week — that’s the real trend. That little short-term bounce is just struggle in the middle of a down move. Don’t lie to yourself.
The key levels are right here: 0.252 above is resistance, 0.218 below is support. Neither side has broken yet, so the direction hasn’t been chosen. What’s the best move at a time like this? Do nothing.
You might ask: is the valuation low enough now? It is true that, compared with its ATH, it’s down 85%, and most of the bubble has been squeezed out. But a low valuation doesn’t mean it has to rise. Market sentiment has only moved from extreme fear back into the greed zone (69). That only means the downtrend is slowing, not that a bottom is in.
So what is this rally actually about, and what is it tied to?
At its core, ENA is the utility token for on-chain lending and the stablecoin ecosystem. For it to really take off, two conditions need to be met: first, Ethena’s USDtb, USDe and similar products need to be truly adopted at scale by institutions; second, demand in the on-chain lending market needs to recover. Right now, the first condition is still slowly progressing, and the second condition has to wait for macro liquidity to improve.
In other words, ENA’s story makes sense, but the timing isn’t here yet.
My view: stay on the sidelines for now. Consider going long only after a break above 0.252, and if 0.218 can’t hold, keep waiting. Don’t rush in just because it has fallen a lot and try to catch a falling knife. In a bear market, I’ve seen far too many cases of people buying the dip only to catch it halfway down.
What’s your signal direction? Tell me in the comments.
A lot of people see ENA drop 85% from its peak and immediately get excited: It’s so cheap now, time to buy the dip?
Wrong.
Let me run the numbers for you. What was the market like at this time last year? What’s the market like now? BTC crashed from 69k, and the entire altcoin market got wiped out three times over. ENA dropping 85% is not strange at all. The question is — what reason does it have to go back up?
The situation right now is very clear: price is stuck at 0.2291, up 2.2% in the past 24 hours. Sounds decent, right? But seven days ago it was still around 0.26. A 12% drop in a week — that’s the real trend. That little short-term bounce is just struggle in the middle of a down move. Don’t lie to yourself.
The key levels are right here: 0.252 above is resistance, 0.218 below is support. Neither side has broken yet, so the direction hasn’t been chosen. What’s the best move at a time like this? Do nothing.
You might ask: is the valuation low enough now? It is true that, compared with its ATH, it’s down 85%, and most of the bubble has been squeezed out. But a low valuation doesn’t mean it has to rise. Market sentiment has only moved from extreme fear back into the greed zone (69). That only means the downtrend is slowing, not that a bottom is in.
So what is this rally actually about, and what is it tied to?
At its core, ENA is the utility token for on-chain lending and the stablecoin ecosystem. For it to really take off, two conditions need to be met: first, Ethena’s USDtb, USDe and similar products need to be truly adopted at scale by institutions; second, demand in the on-chain lending market needs to recover. Right now, the first condition is still slowly progressing, and the second condition has to wait for macro liquidity to improve.
In other words, ENA’s story makes sense, but the timing isn’t here yet.
My view: stay on the sidelines for now. Consider going long only after a break above 0.252, and if 0.218 can’t hold, keep waiting. Don’t rush in just because it has fallen a lot and try to catch a falling knife. In a bear market, I’ve seen far too many cases of people buying the dip only to catch it halfway down.
What’s your signal direction? Tell me in the comments.