Ethena [ENA] has experienced a remarkable surge in the last 24 hours, with its price soaring by double digits.
As a result, CryptoCrypto decided to conduct a thorough analysis to understand the impact of this surge on the token’s on-chain metrics and to predict its future trajectory.
Analyzing Ethena’s Bullish Momentum
Recent data from CoinMarketCap illustrated a strong bullish trend for Ethena, with a 16% increase in value over the past day. The bullish sentiment has been particularly pronounced throughout the previous week.
ENA’s price has surged by more than 40% in the last seven days, a substantial jump. Currently, the token is trading at $0.4015, boasting a market capitalization exceeding $1.1 billion.
Despite this significant price surge, many investors are facing losses.
An analysis of Intolock’s data by CryptoCrypto revealed that only 6.29k ENA addresses were profitable, constituting 15% of the total ENA addresses.
On the social media front, sentiment surrounding Ethena has turned negative, as per Santiment’s data. This shift indicates a growing bearish sentiment in the market.
While the trading volume of the token has increased in recent days alongside ENA’s price surge, a deeper look reveals a more complex situation.
Interestingly, as trading volume rose, ENA’s supply on exchanges also saw an uptick, signaling increased selling activity by investors.
Moreover, the supply of Ethena outside of exchanges decreased, while the exchange outflow spiked, indicating heightened selling pressure on the token.
High selling pressure often leads to price corrections.
Further analysis of Coinglass’ data pointed to another bearish metric: Ethena’s Long/Short Ratio declined, indicating a prevalence of short positions in the market over long positions.
Evaluating ENA’s Future Targets
In a subsequent examination, CryptoCrypto delved into the token’s daily chart to assess market indicators and potential price targets for ENA. It was revealed that the Money Flow Index (MFI) exhibited a downward trend.
The Relative Strength Index (RSI) of Ethena was also on the verge of entering the overbought territory.
Both these indicators suggest a potential price correction. If a correction occurs, ENA could drop to $0.35. However, if the bullish momentum persists, Ethena might aim to surpass its resistance level at $0.411.