Amid a broader market recovery, Ethena [ENA] broke out of a multi-month descending channel.
The altcoin reclaimed $0.10 and reached a seven-month high of $0.144. At press time, ENA traded near $0.132 after surging 41% on the daily chart.
Over the same period, Trading Volume jumped 267% to $363 million. Market Capitalization also increased 40% to $1.2 billion. These increases reflected stronger market activity and fresh capital entering ENA. The rally also triggered a Short Squeeze, forcing bearish traders from the market.
According to CoinGlass, the rebound liquidated $4.2 million worth of Short Positions.
Some traders likely covered their positions, while others may have flipped long as ENA continued rising. That scramble strengthened buying pressure and contributed to further liquidations.
In fact, Derivatives Volume rose 269%, while Open Interest climbed 67% to $390 million. The rising Open Interest showed that traders opened additional positions during the rally.
Meanwhile, the Long/Short Ratio reached 1.04, indicating a slight preference for Long Positions.
Are ENA buyers returning?
As futures traders exited Short Positions, Spot investors and whales accumulated Ethena [ENA]. According to CoinGlass, ENA’s Spot Netflow remained negative for two consecutive days.
Previously, Spot Netflow had remained positive for three consecutive days. At press time, Spot Netflow stood at -$2.3 million, compared with -$4.4 million the previous day.
The negative reading indicated that more ENA left exchanges than entered them, reducing immediately available supply.
Some of this accumulation came from whales. According to vxDrophunter, one whale withdrew 5.822 million ENA from Bybit. The withdrawal during an uptrend suggested confidence in ENA’s market prospects.
Historically, strong demand has supported ENA’s price. However, the latest rally had already stretched momentum considerably.
Can Ethena reach $0.20?
Ethena’s upside momentum remained strong as buyers dominated the market. The Bulls v Bears indicator reached a yearly high of 100.
At this elevated level, the indicator showed overwhelming bullish control. The Relative Strength Index [RSI] supported that reading after entering overbought territory.
Together, both indicators favored trend continuation. However, overbought conditions could also increase the risk of a short-term pullback. If demand holds, ENA could reclaim $0.17 before attempting a move above $0.20.
Final Summary
- Ethena surges 41% as bears pay the price, but can ENA hold?
- Open Interest climbed 67% to $390 million as traders entered new positions.
