The network activity of Ethena [ENA] has witnessed a significant increase, with a notable rise in new and active addresses over the recent week.
Currently, the price of ENA stands at $0.4611, showing a 10.16% surge within 24 hours. Alongside this surge, there was a 257.25% increase in the 24-hour trading volume, indicating a growing interest in the asset.
Analysis of ENA Price Action – Critical Levels to Monitor
Observing Ethena’s price action reveals that the coin has been correcting since reaching its peak in early January.
Presently, ENA is hovering near a crucial support level at $0.455, a level that traders should closely watch.
If ENA manages to sustain a position above this level, there is a possibility of a rally towards the next resistance level at $0.60658.
Furthermore, additional resistance points are located at $0.76939 and $1.00290, serving as significant levels that will influence whether ENA can surge to new highs. Conversely, a dip below $0.455 could lead to further declines towards $0.39235.
Notable Surge in Network Activity
Ethena has experienced a substantial surge in network activity, with an impressive 328.77% growth in new addresses and a 104.60% rise in active addresses in the past week.
This surge indicates an increase in user engagement with the coin, suggesting a heightened interest in ENA.
The rising number of zero-balance addresses further supports this positive trend, indicating that ENA is attracting both new users and existing participants.
Therefore, this uptick in user activity could play a pivotal role in propelling ENA’s price upwards, especially if this trend continues in the upcoming days.
Market Insights and Sentiment
Presently, 67.17% of ENA addresses are holding positions above the current price of $0.464, positioning them “in the money.” This indicates that a significant portion of ENA holders are in a favorable position, showcasing investor confidence.
Conversely, only 10.54% of addresses are “out of the money,” implying that the majority of holders have seen returns on their investments.
The concentration of “in the money” positions contributes to the overall stability of ENA, suggesting that most investors are holding onto their assets rather than selling off.
Positive Sentiment Towards ENA Despite Short Squeeze
Ethena’s Open Interest has seen a notable increase of 6.61%, reaching $364.14 million. This uptick indicates a growing market confidence, with more participants taking positions in the market.
Interestingly, on the 22nd of February, the total liquidations recorded $250.04K in short positions and $176.86K in long positions.
The considerable liquidation of short positions signals a shift towards bullish market sentiment. Consequently, as short traders cover their positions, there is likely to be upward pressure on ENA’s price.
In conclusion, Ethena has displayed significant growth in terms of network activity and price action. While resistance levels pose a crucial factor in predicting future price movements, the rise in open interest and market sentiment is promising.
With more traders opting for long positions and an increase in short liquidations, ENA appears primed for further advancements.
Hence, it is probable that Ethena will uphold its momentum and potentially surpass key resistance levels in the near term.