ENA surges 20% amid crypto downturn as trading volume and investor interest soar
1min read In the midst of a broader crypto market downturn, the Ethena Token (ENA) has experienced a notable price surge, rising by 20% from its previous low. This significant rally has garnered considerable attention, particularly given the volatile nature of the market. The surge in Ethena Token's price can be attributed to several factors, including increased trading volume and investor interest.
One of the primary drivers behind the price rally is the increased trading volume, which has surged by 23% in the last 24 hours. This indicates a substantial influx of buying activity and strong investor interest in the token. Additionally, the release of 2.07 billion ENA tokens, which represents 39.17% of the total supply, initially led to a downtrend due to the selling pressure it created. However, the market has since recovered, suggesting that the initial sell-off may have been overdone.
Data from coinglass reveals that Open Interest has surged to $42.33 million, indicating that traders are becoming more active and opening more positions in ENA futures contracts. This increased activity is likely contributing to the price rally. Furthermore, the long/short ratio on Binance shows that investors are more interested in long positions, which means they are betting on a price surge. This bullish sentiment can bring upward momentum and influence investor behavior.
Several technical factors also support the ongoing price rally. For instance, liquidation data hints at the formation of an uptrend, with $3.33 million in shorts being liquidated in the last 24 hours. This creates buying pressure as short sellers rush to buy back the token, leading to a price surge. Currently, ENA is trading at $0.45 with a market capitalization of $1.45 billion, and an uptrend could push it toward its all-time high.
Crypto analyst Rose notes that ENA is retesting a major support level at $0.2049. As long as ENA holds this support, an uptrend is likely to form, as this level has acted as a strong demand zone in the past. Additionally, the Ethena token price chart may form a double bottom pattern, indicating the start of a bullish uptrend. The key support zone lies at $0.2049, with key resistances at $0.50, 