ENA Rallies 4.96% as Derivative Traders Bet Big, Spot Traders Sell

Derivative traders in the market are currently bullish on ENA, opening long contracts in anticipation of a rally. In contrast, spot traders are opposing this rally by selling ENA, which increases the supply in the market. Despite the overall downward trend in the market, ENA has rallied 4.96% in the past 24 hours, with a weekly gain of 8.06%.

Derivative traders are the primary drivers behind ENA’s recent surge. The Funding Rate, which measures market sentiment by tracking price differences between spot and futures markets through a premium fee, indicates a buying trend. At the time of writing, the Funding Rate was at 0.0011%, a positive value, showing that traders with long contracts are paying a premium, expressing confidence in favorable market movements. Open Interest (OI) growth reinforces this sentiment, with OI increasing by 4.23% to $423.98 million within 24 hours, indicating more long positions being opened. The rally seems to be largely influenced by traders on Binance. The Taker Buy Sell Ratio highlights buying versus selling volume across multiple exchanges. A ratio above 1 indicates more buyers, while a ratio below 1 signals more sellers. At the time of writing, Binance’s Long-to-Short Ratio stood at 1.5549, confirming a bullish bias among traders. A review of Binance’s weekly liquidation heatmap points towards a potential rally on the horizon. At the time of writing, a significant liquidity cluster is at $0.469, with $1 million in sell orders. Liquidity clusters often act as price magnets, drawing prices toward them due to market dynamics. ENA might rally into this zone, clear the sell orders, and either retrace briefly or continue upward.

While the derivatives market is making substantial bets, spot traders are adopting a contrasting approach by actively selling. Spot traders, who buy and sell assets without leverage, have begun offloading their ENA holdings. Over the past 24 hours, $2.05 million worth of ENA has been sold. Significant sell-offs may signal a market downturn or traders securing profits following recent gains. If the latter holds, it aligns with bullish sentiment in the derivatives market, suggesting potential future rallies. Profit-taking is typically temporary, with spot traders expected to resume buying activity shortly after. However