Ethena (ENA) broke out of a multi-month descending channel amid a broader market recovery, surging 41% in a single day to reach a seven-month high of $0.144. Trading volume jumped 267% to $363 million, while market capitalization increased 40% to $1.2 billion. The rally triggered a short squeeze, liquidating $4.2 million worth of short positions. Derivatives volume rose 269%, and open interest climbed 67% to $390 million, with a long/short ratio of 1.04 indicating slight bullish preference. Spot netflow remained negative for two consecutive days, signaling accumulation by investors and whales.
Ethena (ENA) broke out of a multi-month descending channel amid a broader market recovery. The altcoin reclaimed $0.10 and reached a seven-month high of $0.144 before trading near $0.132.
Trading volume jumped 267% to $363 million over the same period. Market capitalization also increased 40% to $1.2 billion, reflecting stronger market activity and fresh capital entering ENA.
The rally triggered a short squeeze that forced bearish traders from the market. According to data, the rebound liquidated $4.2 million worth of short positions.
Some traders likely covered their positions, while others may have flipped long as ENA continued rising. Derivatives volume rose 269%, while open interest climbed 67% to $390 million, showing traders opened additional positions during the rally.
The long/short ratio reached 1.04, indicating a slight preference for long positions. Meanwhile, spot netflow remained negative for two consecutive days, with a reading of -$2.3 million at press time.
The negative reading indicated that more ENA left exchanges than entered them, reducing immediately available supply. Some of this accumulation came from whales — according to data, one whale withdrew 5.822 million ENA from Bybit.
The bulls versus bears indicator reached a yearly high of 100, showing overwhelming bullish control. The relative strength index (RSI) also entered overbought territory, supporting that reading.
Together, both indicators favored trend continuation. However, overbought conditions could also increase the risk of a short-term pullback. If demand holds, ENA could reclaim $0.17 before attempting a move above $0.20.
