Ethena, also known as ENA, has had an impressive showing in the past day with its price climbing by double digits, drawing attention to its potential for growth. As a result, CryptoCrypto has undertaken an in-depth analysis to explore the impact of on-chain metrics on the token and what the future might hold.
Exploring the Recent Bullish Trend of Ethena
The latest data from CoinMarketCap indicates that Ethena experienced a significant surge in value, increasing by 16% within a 24-hour period. The bullish momentum continued from the previous week, with ENA’s price soaring by more than 40% over the last seven days. Currently trading at $0.4015, the token boasts a market capitalization exceeding $1.1 billion.
Despite the impressive price surge, many investors have found themselves at a loss. According to CryptoCrypto’s analysis of Intolock’s data, only 6.29k ENA addresses were profitable, representing a mere 15% of all ENA addresses.
On the social media front, negative sentiment prevailed as indicated by Santiment’s Weighted Sentiment analysis. This shift towards bearish sentiment raises concerns among investors about the future trajectory of Ethena.
While trading volumes have increased alongside ENA’s price surge, a closer look reveals a more nuanced story. The rise in trading volume has coincided with an increase in ENA’s supply on exchanges, suggesting a propensity among investors to offload the token. Furthermore, Ethena’s supply outside of exchanges has decreased while its exchange outflow has risen, indicating heightened selling pressure.
Increased selling pressure often results in a price correction, a scenario supported by Coinglass’ data, which shows a decrease in Ethena’s Long/Short Ratio, indicating a prevalence of short positions over long positions in the market.
Assessing Ethena’s Future Targets
Turning our attention to Ethena’s daily chart, we observe key market indicators that offer insights into ENA’s potential targets. The Money Flow Index (MFI) reflects a downward trend, signaling a possible correction in price.
Ethena’s Relative Strength Index (RSI) is on the brink of entering the overbought zone, a sign that a price correction may be imminent. If this correction occurs, ENA could dip to $0.35. However, if the bullish trend persists, Ethena might break above the resistance level of $0.411.