After experiencing a remarkable 67.24% surge last month, ENA’s performance has taken a nosedive in recent weeks. The cryptocurrency has witnessed a decline of 11.19% on weekly charts and a 3.96% loss in the past 24 hours.
Despite ongoing positive sentiments surrounding ENA, there seems to be a lingering sense of doubt among market participants, as continued selling pressure puts a strain on the asset.
The Bright Side of ENA—But is it All Positive?
Although a wave of positive news continues to surround ENA, suggesting potential price impacts, recent developments have raised eyebrows. Ethena, ENA’s native platform, has recently surpassed Tether.io in terms of transaction fees generated within the last 24 hours.
During this period, Ethena raked in $24.32 million in fees, outpacing Tether’s $17.83 million, indicating higher activity levels on Ethena’s network compared to Tether’s.
Moreover, Ethena’s stablecoin, USDe, has managed to exceed MakerDAO’s DAI in terms of market capitalization. As of the latest data, USDe was valued at $5.81 billion, while DAI stood at $5.36 billion.
This signifies a growing adoption rate of USDe, with its supply expanding to meet the escalating demand as the Ethena network expands rapidly.
Despite these promising developments centered around ENA, recent analyses by CryptoCrypto paint a different picture, with market players taking a more cautious approach.
A Shift in Behavior—Traders Opting to Sell
On-chain metrics scrutinized using Coinglass have highlighted a change in market dynamics—Traders are opting to sell. Open interest has been on a downward trajectory, while Exchange Netflows turned positive, indicating a surge in selling activity.
Open interest also decreased by 4.09%, currently standing at $504.07 million, suggesting an increase in unsettled sell contracts, pointing towards a growing bearish outlook in the market.
Furthermore, spot traders have initiated the transfer of their ENA tokens to exchanges with the intention of selling rather than holding them in private wallets.
In total, ENA tokens worth $899,020 were moved to exchanges, contributing to the mounting selling pressure and consequent downward price movements.
Forcing Bears into the Spotlight
A significant number of long positions on ENA have been forcefully liquidated, with $636,300 worth of the asset withdrawn from the market. This move suggests prevalent market sentiment does not align with further price surges for ENA, with a majority anticipating a decline instead.
CryptoCrypto’s analysis of the OI-weighted Funding Rate provides deeper insights into market sentiment, with indications pointing towards a period of decline, as reflected by the 0.0224% value on the 8-hour chart.
Despite positive developments, the shift in major indicators towards a bearish sentiment implies that ENA is likely to continue its downward trajectory.