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.