- ENA tested critical support levels, with key resistance points at $0.60658 and $0.76939.
- Positive market sentiment was driven by increased network activity, Open Interest, and short liquidations.
Ethena [ENA] has experienced significant growth in network activity, with new and active addresses surging over the past week.
At press time, ENA’s price was $0.4611, having surged by 10.16% in just 24 hours. This jump was accompanied by a 257.25% rise in its 24-hour trading volume, highlighting a growing demand for the asset.
ENA price action analysis – Key levels to watch
Ethena’s price action showed that the coin had been in a period of correction since its peak in early January.
At the time of writing, ENA was trading near a critical support level of $0.455, which traders will need to monitor closely.
If ENA can maintain a close above this level, there is potential for a rally toward the next resistance point at $0.60658.
Additional resistance liay at $0.76939 and $1.00290, marking key levels that will determine if ENA can move toward new highs. However, should the price dip below $0.455, further declines toward $0.39235 are possible.
Source: TradingView
A surge in network activity
Ethena has also seen a substantial increase in network activity, with new addresses growing by 328.77% and active addresses rising by 104.60% over the past week.
This surge suggests that more users are engaging with the coin, indicating growing interest.
The increasing number of zero-balance addresses further supported this positive trend, suggesting that ENA is attracting both new and existing participants.
Therefore, this uptick in user activity could play a significant role in pushing ENA’s price higher, particularly if this trend continues in the coming days.
Source: IntoTheBlock
Insights from market positions
At press time, 67.17% of ENA addresses were “in the money,” holding positions above the press time price of $0.464. So, a significant portion of ENA holders were in a favorable position, reflecting investor confidence.
Meanwhile, only 10.54% of addresses were “out of the money,” indicating that the majority of holders have seen returns on their investments.
The concentration of “in the money” positions added to the overall stability of ENA, suggesting that most investors were holding onto their assets rather than selling.
Source: IntoTheBlock
ENA: Bullish sentiment despite short squeeze
Ethena’s Open Interest has seen a notable increase of 6.61%, reaching $364.14 million. This growth in Open Interest indicates a rising confidence in the market, with more participants taking positions.
Interestingly, on the 22nd of February, total liquidations amounted to $250.04K in short positions and $176.86K in long positions.
The larger liquidations of short positions suggested that market sentiment was shifting toward the bulls. Therefore, as short traders are forced to cover their positions, upward pressure on ENA’s price is likely to continue.
Source: Coinglass
Conclusively, Ethena has shown significant signs of growth, both in terms of network activity and price action.
While resistance levels remain a key factor in determining future price movements, the surge in open interest and market sentiment is encouraging.
With more traders betting on long positions and short liquidations increasing, ENA is poised for further gains.
Therefore, it seems likely that Ethena can maintain its momentum and potentially break through key resistance levels in the near future.
