Amid a broader market recovery, Ethena (ENA) broke out of a multi-month descending channel, reclaiming the $0.10 level and reaching a seven-month high of $0.144. Trading near $0.132, the altcoin recorded a 41% gain on the daily chart.
Market activity and capital inflows increased concurrently, with trading volume jumping 267% to $363 million and market capitalization rising 40% to $1.2 billion. According to CoinGlass data, the rally triggered a short squeeze that liquidated $4.2 million worth of short positions as bearish traders exited the market.
Derivatives activity also expanded significantly, with derivatives volume rising 269% and open interest climbing 67% to $390 million. The increase in open interest indicated that traders opened additional positions during the rally, while the long/short ratio reached 1.04 to show a slight preference for long positions.
Spot investors and whales also accumulated ENA during the move. ENA's spot netflow remained negative for two consecutive days, standing at -$2.3 million following a -$4.4 million reading the previous day. This negative netflow indicated that more ENA left exchanges than entered them, reducing the immediately available supply. Data from vxDrophunter noted that one whale withdrew 5.822 million ENA from Bybit during the uptrend.
On the technical front, the Bulls v Bears indicator reached a yearly high of 100, reflecting overwhelming bullish control. Additionally, the Relative Strength Index entered overbought territory. While these indicators favor trend continuation, overbought conditions introduce the potential for a short-term pullback. If demand holds, the token faces potential targets near $0.17 and $0.20.
