Key Takeaways
Ethena climbed by 31% in a week to hit $0.855. It has been fueled by strong network adoption, retail-led buying, and bullish technicals.
Ethena [ENA] surged by 30.98% over the past week, climbing from $0.51 to a 7-month high of $0.855 on the charts. In fact, its strength has spanned the monthly and yearly charts too, with gains of 143% and 152%, respectively.
At press time, ENA was trading at $0.8086, up 9.05% in just 24 hours. It has been backed by rising network activity, positive sentiment, and steady capital inflows.
Naturally, traders are now eyeing the next leg up in this Ethena price cycle.
Network adoption hits record levels
Santiment’s data showed Ethena logging positive Price DAA Divergence for seven straight days.
Here, it’s worth noting that a sustained positive DAA Divergence is a sign of strengthening fundamental demand. Especially on the back of network usage and engagement growing too.
Source: Santiment
In such cases, the asset is often undervalued relative to network activity. What this usually implies is that there may be more room for upside as the price aligns with demand.
At the time of writing, the on-chain profitability seemed to reinforce this. Especially since the ratio of transactions in profit to loss stood at 4.16, with 75.38 million transactions in profit versus 18.08 million in loss.
Source: Santiment
Are the whales cautious these days?
Surprisingly, despite the price uptick, Ethena whales are yet to show up across the market.
In fact, the Spot Average Order Size data from CryptoQuant hinted at total whale absence in the spot market.
Source: CryptoQuant
According to the aforementioned chart, there have been no Big Whale Orders in the past 30 days. Also, the Futures Average Order Size data appeared to mirror the same lack of large positions.
The same pattern can also be seen in the Futures market, as per the Futures Average Order Size data. In the Futures market too, whales took a step back – A sign of less speculative activity from large entities.
Source: CryptoQuant
When whales take a step back from the Spot and the Futures market, it reflects a cautious approach as they wait for a motivation to do so.
Retail traders drive spot buying
Finally, it’s worth pointing out that retail participants have dominated recent spot activity.
According to Coinalyze, Ethena recorded three days of consecutive Buy-Sell Delta. At press time, ENA saw 84.2 million in Buy Volumes compared to 75 million in Sell Volumes.
Source: Coinalyze
As a result, the spot market saw a positive Buy- Sell Delta of 8.33 million – A slight hike from 8.09 million the previous day.
Usually, a positive Delta alludes to higher buying pressure relative to Selling pressure. This is often a prelude to higher prices on the charts.
Price prediction
Ethena (ENA) recently bounced off its recent low of $0.55 and successfully defended the $0.60-support level. Shortly after, the price bounced strongly, with the Parabolic SAR dipping below price candles.
Often, when prices flip above the SAR, it means buyers are in control and the upward momentum may be strong. Moreover, the Stochastic RSI surged to 85.37 – Further confirming the buyers’ presence.
Source: TradingView
If buyers keep price above $0.70, a push towards $1 may be plausible. However, failure to hold this zone could drag ENA back to $0.55.
