Crypto Market Suffers Over $650 Million in Liquidations: Ethena, Lido, and Pump.fun Lead Losses
The cryptocurrency market has experienced a significant wave of liquidations exceeding $650 million, with notable losses seen in altcoins such as Ethena (ENA), Lido (LDO), and Pump.fun (PUMP). These tokens have faced strong selling pressure over the last 24 hours, signaling a potential further downturn as bearish momentum intensifies.
Liquidation Overview
Data from Coinglass indicates that total liquidations in the crypto market have reached approximately $666 million. Long position liquidations dominate the figure, accounting for around $502 million, while short position liquidations make up approximately $164 million. This imbalance suggests a widespread forced exit of bullish traders amid increased market volatility.
Ethena (ENA) Faces Continued Downtrend
Ethena, a synthetic dollar token, is trading near $0.6881 following a recent low of $0.6744. It is currently in the midst of its third consecutive day of decline and is approaching a critical support trendline formed by lows from August 2 and August 21, positioned near $0.65. A daily closing price below this trendline could trigger an extended downside move, potentially pushing the price down to the 50-day Exponential Moving Average (EMA) of $0.5876. Further support is noted at the August 2 low of $0.5122. Technical indicators reinforce this bearish outlook. The Moving Average Convergence Divergence (MACD) has been trending downwards since a sell signal was generated on August 15, with red histogram bars below zero indicating strengthening bearish momentum. The Relative Strength Index (RSI) stands at 53, slightly above neutral but showing signs of diminishing buying pressure. Should the RSI drop below this midpoint, it may catalyze a surge in selling activity, increasing the likelihood of a pattern breakdown.
Conversely, if Ethena manages to rebound from its support trendline or secure a decisive close above the $0.7533 mark reached on Friday, it could resume an upward rally toward the recent peak of $0.8555 recorded on August 11. ### Lido (LDO) Signals Potential Double Top Reversal
Lido has extended its losses by 1% as of Monday, following a significant 6.27% drop on Sunday. The staked liquid governance token is currently exhibiting signs of a possible double top reversal formation, with two prominent peaks recorded on August 12 and August 22. Such a pattern is typically considered a bearish indicator, suggesting a potential trend reversal from its recent highs.
The daily chart RSI for Lido also reflects this cautionary stance, with the indicator hinting at weakening upward momentum and increasing vulnerability to a downward move.
Pump.fun (PUMP) Caught in a Declining Wedge
Pump.fun continues to trade within a declining wedge pattern, implying a downcycle that may deepen further. This technical setup could forecast even steeper price corrections if selling pressure remains unchecked.
The recent surge in cryptocurrency market liquidations underlines the volatile environment facing traders, especially holders of altcoins like Ethena, Lido, and Pump.fun. Market participants should monitor key technical levels closely, as breaking critical supports may accelerate corrections across these assets. Meanwhile, a rebound from support zones could pave the way for short-term recovery, but the overarching trend appears fragile amid the current selling dynamics.
Investors are advised to exercise prudence and closely watch market developments amid these heightened risks.
Source: Fxstreet