Ethena Labs reduces ENA circulating supply — may retest the $0.30 level only if the following conditions are met.

Ethena Labs has quietly positioned ENA as one of the most actively accumulating governance tokens in the DeFi space. While many projects are still discussing buyback and treasury strategies, Ethena has already begun large-scale withdrawals of ENA from centralized exchanges. For users trading ENA on Gate, the core question is straightforward: With ENA’s circulating supply on exchanges continuously decreasing, does this really create favorable conditions for ENA to test the $0.30 level again? And what prerequisites must be met?

This article will analyze the changes in ENA’s supply, its interaction with Ethena’s fundamentals, and key points ENA holders on Gate should focus on next.

Ethena Labs Adds 25 Million ENA, Exchange ENA Balances Continue to Decline

Latest on-chain data shows that Ethena Labs’ related wallet transferred approximately 25 million ENA from a centralized platform, valued at over $7 million at the transfer time, now deposited into a self-custody address.

After this operation, the wallet’s total ENA holdings approach 800 million, with a market cap in the hundreds of millions of dollars at current prices. Additionally, project-related entities control large amounts of ENA assets, collectively managing a significant portion of ENA supply in the market. This pattern highlights three key features of ENA’s exchange supply:

• Ethena Labs is still in the active accumulation phase, not distribution.
• Large amounts of ENA are moving out of exchange order books into long-term holding wallets, directly reducing available liquidity for immediate trading.
• The project’s ecosystem currently controls a substantial part of ENA’s circulating supply, giving Ethena significant influence over supply dynamics and governance.

For ENA traders on Gate, this means that if demand fluctuates sharply, the available ENA pool on exchanges could become tighter, amplifying bidirectional price volatility.

ENA Whales: Data Shows Large Buyers Continue Accumulating

Not only is the project’s treasury accumulating ENA, but large holders—“whales”—have also been very active recently.

On-chain and market data jointly indicate:

• ENA spot order sizes have recently increased significantly during trading periods, consistent with institutional or whale buying activity rather than small retail trades.
• Addresses holding ENA have seen their balances steadily grow, with buy volumes exceeding sell volumes over multiple days.
• Net outflows of ENA from centralized platforms to private wallets surpass deposit volumes.

Practical implications include:

• Large accounts are buying ENA and withdrawing it from exchanges.
• ENA reserves on exchanges are gradually decreasing, not increasing.
• Historically, similar accumulation phases for governance tokens have often foreshadowed stronger price action, though the exact breakout timing is unpredictable.

In this context, the $0.30 resistance zone might become feasible again, provided the overall structure remains healthy.

ENA Current Price: Structure, Indicators, and Path Toward $0.30

From a technical perspective, ENA’s price is starting to reflect this accumulation.

Latest market snapshot shows:

• ENA price fluctuates in the $0.26–$0.28 range, rebounding from a local low near $0.255.
• Circulating supply is about 7.7 billion ENA out of a max supply of 15 billion.
• Market cap is in the tens of billions of dollars, with fully diluted valuation exceeding $4 billion, depending on intraday prices.

Technically, ENA is building a positive bottom structure:

• The rebound around $0.255 provides a clear short-term support zone.
• The price then advances toward the $0.28 level, demonstrating resilience against selling pressure.
• Momentum indicators are turning bullish, with trend-following tools showing early signs of upward movement, and volatility gradually normalizing after a recent pullback.

Based on this structure, the $0.30 level remains an important resistance: a key psychological threshold, previous supply zone, and a price point closely watched by many Gate short-term traders.

$0.30 Resistance: Only When Conditions Are Right

Testing $0.30 again is not guaranteed; multiple conditions must be met simultaneously.

1. The accumulation trend must persist The bullish thesis for ENA heavily depends on ongoing accumulation:

• Project-related wallets continue increasing holdings.
• Whales keep withdrawing ENA from exchanges.
• Exchange reserves keep decreasing rather than rising.

If this scenario reverses—for example, major holders start returning ENA to exchanges in large volumes or wallets begin reducing their holdings—the likelihood of a successful breakout above $0.30 diminishes significantly.

2. ENA must hold key support levels Recent structure offers two reference price points:

• Short-term support around $0.255.
• Deeper technical support near $0.24, where downside momentum has slowed.

To push above $0.30, bulls need to defend higher support levels on daily closes. Breaking below both support zones would signal short-term weakness and hinder further upward movement.

3. Breakout requires strong volume expansion Previous attempts to breach $0.30 failed when volume dried up at resistance. For this round, ENA needs:

• Spot trading volume to increase as the price approaches $0.30.
• Open interest in derivatives to rise but stay controlled.
• Funding rates not to spike to excessive positive levels.

This pattern indicates genuine demand rather than a short-lived short squeeze.

4. Overall crypto market sentiment should remain positive or neutral Even with strong on-chain signals and technical setups, a sudden shift to risk-off sentiment in the broader crypto market—such as major coins dropping significantly—could disrupt any breakout efforts. Historically, ENA performs best when the macro environment remains neutral or optimistic, not during extreme risk aversion.

Only when these four main conditions are broadly met can ENA hope for a clean and sustained retest of $0.30, rather than mere speculation.

Gate ENA: What Holders and Traders Should Watch Next

For Gate users, translating this logic into actionable indicators is key.

Spot ENA on Gate Focus on ENA/USDT at key levels:

• Support at $0.255 during dips
• Resistance at $0.28–$0.30 during rallies

Key questions:

• When ENA retraces to support, do buy orders appear promptly?
• Can large sell walls at $0.30$ be absorbed, or will they quickly suppress the price?

Derivatives ENA If trading ENA perpetual contracts, monitor:

• Funding rates—persistently high positive rates often signal overleveraged long positions and increased risk of pullback.
• Open interest—gradual increases support healthy growth, sudden spikes followed by quick drops may indicate top formation.

These metrics help assess whether ENA’s push toward $0.30 is driven by genuine demand or excessive leverage.

Fund Flows and Price Reactions Combine real-time Gate price and volume data with on-chain dashboards:

• When large ENA withdrawals from exchanges occur, does the price on Gate rise and strengthen support?
• Or do these outflows fail to produce meaningful price gains?

Consistent positive linkage between fund flows and price indicates genuine accumulation.

ENA Summary: Clear Accumulation Trend, But Not Guaranteed

Ethena Labs actively reduces ENA supply on exchanges, coupled with ongoing whale accumulation, providing structural bullish signals:

• Lowered exchange reserves
• Larger holders favoring accumulation over distribution
• Technical setups showing recent bottoming and improving momentum

However, the $0.30 test remains conditional on multiple factors:

• Continuation of accumulation
• Support levels holding firm
• Volume surges at breakout attempt
• Broader market environment not turning risk-off

For Gate ENA holders and traders, a rational approach is to stay calm, data-driven, and optimistic. Use Gate’s spot and derivatives markets to monitor ENA’s performance at key levels, combine with on-chain insights, manage positions prudently, and remember that ENA remains a high-volatility DeFi governance token.

This analysis does not constitute investment advice. In this fast-evolving and experimental space, risk management and understanding ENA’s next moves are equally crucial.