Ethena (ENA) Surges with $1.4B Volume Spike
Ethena's native token, ENA, has started August strong, continuing its winning streak with a 14% surge in the last 24 hours. At the time of writing, ENA is trading at $0.670.
This price increase brings ENA’s total gains for the past month to over 155%, positioning it as a top performer in the crypto market.
Market Confidence Boosted by $1.42 Billion Weekly Volume
On-chain data indicates that ENA’s recent rally is fueled by real demand, not just short-term speculation. Data from Santiment shows the altcoin's weekly trading volume has jumped by over 700%, reaching $1.41 billion this week – its highest weekly total in over a year.
A sharp rise in both price and trading volume often signals strong market confidence. High trading volume indicates increased participation, lending credibility to the price movement.
For ENA, this combination suggests sustained bullish momentum as the market enters a new month.
Furthermore, futures market data reflects growing investor confidence. ENA’s open interest has increased by over 30% in the past 24 hours, reaching $1.15 billion.
Open interest represents the total number of outstanding derivative contracts. When futures open interest rises alongside an asset’s price, it suggests new capital is entering the market, signaling growing bullish sentiment.
The 30% jump in ENA’s open interest indicates traders are increasingly positioning for further price increases.
This bullish outlook is also reflected in its long/short ratio, which now sits at a monthly high of 1.05, with significantly more bullish bets than bearish ones across the derivatives market.
The long/short metric measures the proportion of long positions versus short positions in an asset’s futures market. A ratio above one signals more long positions, indicating that most traders expect ENA’s value to rise.
Technical Indicators Point to Further Gains
Technical indicators also suggest continued upside. ENA’s Moving Average Convergence Divergence (MACD) remains in a bullish crossover pattern on the daily chart. This pattern, where the MACD line (blue) is above its signal line (orange), is often associated with sustained upward momentum.
If current trends continue, ENA could extend its gains and rally to $0.77 in the coming weeks.
However, should demand decrease and bearish sentiment return, a price dip below $0.64 could occur, potentially falling towards $0.48.
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