After a security breach at Binance resulted in the theft of 217.5 million ENA tokens worth $33.9 million, the exchange has begun an aggressive recovery effort to repurchase the stolen assets. Binance has been acquiring ENA through both market transactions and over-the-counter deals.
As part of the recovery initiative, Ethena deposited 128.63 million ENA worth approximately $24 million to Binance through an OTC arrangement. The tokens purchased through these channels are kept off the order book to minimize direct price impact.
Following the hack, ENA initially fell to a low of $0.16 as investor concerns mounted regarding Ethena's partnership with Binance. The token has since recovered and was trading at $0.193 at the time of reporting, representing a 3.7% daily gain from the lows. Notably, spot volume declined 55% during this period, reflecting reduced overall market activity.
Exchange Outflows Signal Market Sentiment
Despite the security incident, significant amounts of ENA have flowed out of exchanges rather than being liquidated. Over the past 24 hours, $91 million in ENA moved off exchanges, with $258 million in outflows recorded over the preceding three days. These withdrawals suggest investors are either accumulating tokens at lower prices or moving assets to self-custody amid security concerns.
Technical Indicators and Recovery Outlook
Technical analysis indicates potential for further upside movement. A bullish crossover has formed in the Stochastic RSI indicator, which rose to 48 at the time of reporting. A move above the 50 level would confirm a trend reversal. If recovery conditions hold, ENA could reach $0.21 and pre-hack levels. Conversely, failure to maintain current levels could result in a retest of $0.18.
