The Ethena DeFi platform is witnessing a resurgence in ENA on-chain volume following a period of sluggish activity. Could this indicate the beginning of a positive turnaround for the network, particularly in terms of its Total Value Locked (TVL)?
ENA entered the trading scene in April this year with robust daily on-chain volumes surpassing $1 billion during its early stages. However, the volumes gradually declined, dropping to under $100 million most days between July and September 2024.
Recent data shows a significant increase in ENA’s daily on-chain volume. Over the past two days alone, it has averaged more than $500 million. While this figure doesn’t match its initial highs, it does suggest an increase in trading volume and demand recently.
ENA’s Effort to Break Out of its Bottom Range
ENA has regained bullish momentum over the past week, showing signs of moving away from its lows in September. This mirrors the resurgence of bullish activity in the broader market.
With a 78% increase in the past 7 days, reaching a peak of $0.46, ENA’s rally seems capped by an ascending resistance line it tested during Tuesday’s trading. It subsequently retraced over 5% to its current price of $0.40.
Despite the attempt at recovery, ENA is still far from its all-time high of $1.52. The key question now is whether the token can maintain this recovery for further gains. A bearish divergence suggests that bulls may face challenges in the short term.
Over the last 2 months, ENA has shown a solid recovery in price action, indicating its attractiveness in the market. This could bode well for its long-term prospects.