ENA Token Price Deep Dive: Logic Behind Fluctuations and Investment Direction

What is the ENA Token?

ENA is the native token of the Ethena protocol, designed to deliver the on-chain synthetic dollar USDe and provide yield-bearing assets for the decentralized finance ecosystem. ENA serves several key functions:

• Protocol governance
• Staking ENA to earn USDe
• Supporting the protocol value accrual through the buyback and burn mechanism
• Incentivizing liquidity providers to foster ecosystem development

ENA is now listed on multiple leading exchanges, including Gate, featuring high liquidity and a broad user base.

ENA Token Latest Price Performance

Chart: https://www.gate.com/trade/ENA_USDT

Based on official Gate data, as of July 29, 2025:

• Current price: 0.5976 USDT
• 24-hour change: -9.42%
• 24-hour high: 0.7004 USDT
• 24-hour low: 0.5965 USDT
• 24-hour trading volume: 44.73 million USDT

ENA is experiencing short-term volatility and correction. Market activity remains high, but the price is affected by token unlocks and shifting sentiment.

Three Key Drivers of ENA Token Price

1. Rising On-Chain TVL: Ethena’s total value locked (TVL) has surpassed $260 million, up 40% in a week. This surge in TVL signals rapid market adoption of USDe and typically aligns with increased protocol usage, driving value accumulation for ENA.
2. Stable USDe Yields: With an annualized yield near 10%, USDe offers stable returns that attract significant user participation in staking and collateralization, increasing real demand for ENA.
3. Macro Market Conditions: In late July, Bitcoin’s sideways price action cooled overall risk appetite, reducing demand for high-volatility assets like ENA and applying short-term price pressure.

Potential Impact of Upcoming Token Unlocks

According to the Unlocks schedule, the Ethena protocol will execute a major token unlock between late July and early August, involving a total of $686 million. This event will include:

• Team incentive allocations
• Vesting of investment institution options
• Conversion of ecosystem incentives into freely tradable tokens

Large holders cashing out could trigger short-term selling pressure, depress ENA’s price, and cause cascading effects. During this period, investors should manage their positions carefully and set clear stop-loss orders.

Technical Chart Analysis: Support and Resistance

The daily chart shows ENA approaching a critical support area:

• Support: 0.55 USDT (prior lows and historical high-volume zone)
• Resistance: 0.70 USDT (yesterday’s high) and 0.80 USDT (psychological resistance level at a round number)
• Moving averages: The price has broken below both the 20-day and 50-day moving averages, signaling bearish momentum
• RSI: Around 29, now in oversold territory and potentially primed for a short-term rebound

If ENA holds above 0.55 USDT, it could set the stage for a fresh rally.

Risk Management Strategies for New Investors

For those new to the market, ENA’s price fluctuations can be significant. Prudent risk control is essential:

• Gradual position building: Buy in several small increments within the 0.55–0.60 USDT range to avoid heavy exposure at a single price point
• Stop-loss discipline: Set stop-loss orders if the price drops below 0.52 USDT to limit downside
• Short-term targets: The initial rebound target is 0.70 USDT. After a breakout, consider gradually taking profits
• Medium-term strategy: Ethena’s sustainable yield mechanism and market demand support a holding period of 3–6 months
• Risk considerations: Monitor unlock dates, adjustments in USDe yields, and macro news (such as Federal Reserve policy or Bitcoin price swings)

Conclusion

Recently, ENA’s price has undergone significant adjustments due to market volatility and token unlock events, but the protocol’s fundamentals are clear and the product structure remains robust. ENA’s value foundation will remain solid as long as USDe continues to deliver strong yields and attract capital inflows. For new investors, understanding the logic behind price movements, implementing sound risk management and allocating capital wisely are the most effective strategies for navigating today’s market.