Key Takeaways
Ethena rallied 25.74% hitting a 6-month high of $0.499. Buyers have scooped up over 200 million tokens in the past 48 hours until press time.
Since breaking out of a descending channel two weeks ago, Ethena [ENA] has experienced a sustained upward momentum. Over this period, the altcoin jumped from a local low of $0.25 to a 6-month high of $0.499.
As of this writing, Ethena was trading at $0.4908, marking a 25.74% increase in the past 24 hours. At the same time, its trading volume soared 132% reaching $778.8 million, while market cap jumped 24% to $3.15 billion.
Typically, a surge in volume and market cap in tandem signals increased capital inflow and growing on-chain activity.
Ethena buyers make a strong comeback
After taking a step back for almost two weeks, Ethena buyers returned with strength to accumulate.
According to Coinalyze, Ethena recorded two consecutive days of positive delta for the first time in ten days. On the 19th of July, Ethena recorded 105.31 million in Buy Volume compared to 105.02 million in Sell Volume.
Source: Coinalyze
The same pattern emerged the following day, with Buy Volume reaching 106.12 million compared to 91.98 million in Sell Volume.
As a result, the market recorded a Buy-Sell Delta of 294k and 14.14 million, respectively. A positive delta implies that there are more buy orders relative to sell ones, a clear sign of aggressive spot accumulation.
Futures are eyeing more gains
According to Coinalyze, Ethana’s Long Short Ratio jumped significantly, reaching 2.58 as of the time of writing. Thus, it seems these buyers rushed into the market to position themselves.
Source: Coinalyze
Typically, when this metric surges to such levels, it signals a higher demand for long positions. Thus, investors who rushed into the Futures market entered to take long positions.
In that case, long positions accounted for 72.09% while short positions accounted for 27.9% of the total Futures positions.
Source: Coinalyze
This is further validated by the Aggregated Funding Rate, which has remained positive sustainably for the past week.
When Futures record a higher demand for longs, it implies that investors are aggressively betting on prices to rise further.
Can ENA hold these gains?
According to AMBCrypto’s analysis, Ethena’s uptrend strengthened as buyers returned with strength.
As a result, Ethena flipped the Long Term Moving Averages for the first time since February. As of this writing, ENA was sitting above Long-term MAs with 200MA at $0.4417 and 200EMA at $0.41.
Source: TradingView
When prices move above the long-term MA, it signals a strong upward move and its potential to continue. That said, to keep the bullish outlook, ENA must close decisively above the 200 MA band.
By doing so, the uptrend will continue and Ethena will face the next significant resistance around $0.68. However, if this upward move fails and a pullback emerges, ENA will retrace to $0.41.
