Amid the crypto market downturn, the Ethena Token (ENA) is witnessing a significant price rally, surging 20% from yesterday’s dip. The price spike, especially in the turbulent market, has caught everyone’s attention. In this blog, let us discuss why this surged and whether it is sustainable.
Why is the Ethena Token Price Surging Today?
With Donald Trump’s Crypto Summit closure, investor interest sparked a minor recovery in the market. Along with Bitcoin, the Ethena token price surged, but there’s more to this altcoin’s price rally.
Beginning with the increased trading volume, where it has surged 23% in the last 24 hours. Currently, at $645.63M, it indicates an influx of buying activity while signaling strong investor interest.
Interestingly, just a day before, 2.07B ENA (39.17% of the total supply) was released in the market. This led to a massive downtrend, as the token unlocks built selling pressure on the token.
Getting back to the topic, the Coinglass Data reveals that Open Interest has surged to $42.33M. It indicates traders are becoming more active and opening more positions in the ENA futures contacts, advancing the price rally.
Even the long/short ratio on Binance reveals that investors are more interested in long, which means they are betting for a price surge. Such action can bring upward momentum and influence investor sentiments.
Will Ethena (ENA) Sustain This Rally?
Many technical factors have favored the ongoing price rally, and a few will likely continue to push the token higher. It includes the liquidation data, which hints at the uptrend formation. In the last 24 hours, $3.33M shorts were liquidated.
Buying pressure is created as the short sellers rush to buy back the token. Hence, a price surge is expected. It currently trades at $0.45 with a market capitalization of $1.45B, so an uptrend can push it toward its ATH.
In addition, crypto analyst Rose reveals that the ENA is retesting a major support at $0.2049. As long as ENA holds this support, an uptrend will likely form, as the analyst believes this level acted as a strong demand zone earlier. Moreover, the Ethena token price chart may form a double bottom pattern, indicating that a bullish uptrend will begin.
With that, the key support zone lies at $0.2049 (the potential reversal zone), and the key resistance stands at $0.50, $0.75, and $1.00. A successful move past these would result in the $0.75, $1.00, and $1.50 price targets per Ethena price prediction.
Final Thoughts
Ethena token’s strong 20% price recovery reveals its position in the market. Despite the drop, the investors’ trading activity remained high, showcasing strong investor interest. The positive investor sentiments, bullish derivatives data, and short liquidation are the prime reasons behind this recovery.
Interestingly, the uptrend will continue if the trend reversal happens at $0.2049 and tokens move towards the key resistances at $0.50, $0.75, and $1.00. With this, the ENA price can achieve new highs, especially if the Bitcoin price recovers.
The post Why is Ethena Token Price Up 20% Today & Will It Sustain? appeared first on CoinGape.
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