• ENA fell 19% in one day, erasing recent gains and hitting key support near the $0.30 level.
• TVL climbed to $5.426 billion, with $722 million added in May, showing sustained liquidity inflows. 

In the past 24 hours, Ethena [ENA] recorded the highest loss among crypto tokens, taking a hit of 19%.

However, analysis also indicated that trading volume has begun to decline by 13%, suggesting a reduction in selling pressure.

Amid this development, a surge in liquidity and the presence of a key demand zone have served as attractive points, but sellers remain active and threaten a potential rebound.

ENA’s recent drop has wiped out investors’ gains from the past month, with a 4.84% decline. At the time of writing, analysis indicated that this drop has been largely driven by activity in the derivatives market.

According to CoinGlass, ENA’s Open Interest Weighted Funding Rate turned negative for the first time in 10 days. That shift confirmed a bearish flip in derivative sentiment.

On top of that, the Long-to-Short Ratio has slipped to 0.8619—meaning sell orders have outpaced buy contracts. Such an imbalance often precedes more downside unless quickly corrected.

If these metrics continue to decline, ENA will likely face further price drops.

Notably, the decline may be nearing its end as two major bullish confluences emerge.

AMBCrypto analysis found that ENA has consistently recorded liquidity inflows, as indicated by the total value locked (TVL).

TVL represents the total on-chain value held within a protocol.

Per DeFiLlama, TVL was $5.426 billion at press time, with $722 million staked or purchased in May alone.

That’s not all.

ENA recently traded into a key Fair Value Gap (FVG) demand zone—highlighted by the rectangle on the chart.

Interestingly, it reached the midpoint of this FVG demand zone, marked at $0.3044, a level that has historically triggered the start of a rally.

If momentum builds from this level, ENA could gain 34%, potentially reclaiming the $0.4080 mark.

Of course, upside won’t come easily.

The In/Out of the Money Around Price (IOMAP) metric showed that the rally will face resistance, with ENA likely to encounter major obstacles ahead.

The metric showed that between $0.313 and $0.327, the asset is likely to encounter heavy selling pressure, totaling 253 million ENA.

That’s a heavy resistance cluster and could prompt more sell pressure on the way up.

To add to this, the Liquidation Heatmap reveals a dense band of unfilled contracts around $0.32, setting up a potential rejection if buyers stall.