Ethena (ENA) Shows Consistent Strengthening Signals, Targeting $0.60 Resistance

Ethena (ENA), one of the relatively new cryptocurrency assets, has shown consistent strengthening signals in recent days.

Ethena (ENA) has been displaying a strong combination of network growth, signaled by new addresses and large-scale transactions, along with signs of institutional involvement and a reduction in supply on exchanges, rendering it capable of breaking the psychological barrier at $0.60.

Address Growth and Transactions Indicate Interest

Ethena’s on-chain performance displayed a substantial surge in the number of new addresses and large-value transactions. In the past week, new addresses clocked a 56.43% increase, while active addresses went up by 37.12%.

Furthermore, transactions in the range of $10,000-$100,000 saw a 220% jump, and transactions in the range of $100,000-$1 million witnessed an even more dramatic increase of 613.64%.

This data could be an indication of greater involvement from large and institutional investors. Generally, the growth in addresses and large transactions signals a burgeoning market interest in this crypto asset.

If this trend continues, then the potential for price increases could get stronger in the near future.

ENA Total Outflows Surpass Inflows

Data from the exchanges displayed a strong accumulation behavior towards ENA, with total outflows from exchanges amounting to $24.11 million, in contrast to inflows which were only $19.87 million.

This signifies that more ENA tokens are leaving the exchange for personal wallets or self-storage.

This phenomenon is commonly associated with a reduction in selling pressure on centralized exchanges, as investors tend to hold assets for the long term.

Large net outflows during periods of price strength are usually a signal that the price rally may continue, and they indicate investor confidence in the long-term prospects of ENA.

Highly Leveraged Long Positions Liquidated

The derivatives market showed that there was a long squeeze, where highly leveraged long positions were massively liquidated. Long liquidations totaled $504,440, vastly exceeding short liquidations which were only $75,450.

This indicates that many speculators suffered losses as the price approached resistance levels.

However, this leverage reset could pave the way for a healthier and more stable price structure. With less speculative exposure, room for further upside could be created if buyers come back into the market. This makes the correction an opportunity to build a more solid technical foundation.

Short-Term Activity Increases

Data from Santiment showed an increase in short-term trader activity, reflected by the Realized Cap HODL Waves (0-1 day) metric rising to 0.0915. This shows that many market participants are making transactions in a short period of time, signaling a surge in volume and liquidity.

While short-term activity can add volatility, it can also strengthen short-term momentum. With market attention refocused on ENA, there is great potential for this cryptocurrency to break through key resistance levels and enter a broader uptrend phase.

Overall, Ethena (ENA) is showing a strong combination of network growth, signaled by new addresses and large-scale transactions, along with signs of institutional transactions and a reduction in supply on exchanges.

If the price manages to break and hold above $0.60, it could be a valid signal of an overall trend reversal. In the meantime, the market remains cautiously optimistic, awaiting further confirmation.