Ethena Price Prediction: ENA Hits a Six-Month High, Will Long Positions Reach $0.68?

Since breaking through the downward channel two weeks ago, Ethena (ENA) has maintained a steady rising trend. During this period, the altcoin price rebounded from a local low of $0.25 and broke through the 6-month high of $0.499.

Today (21st) in the Asian afternoon session, ENA is currently reported at 0.505 USD, with a market capitalization growing by over 25%, reaching 3.21 billion USD.

Typically, an increase in trading volume and capitalization indicates that a large amount of capital is flowing into the market and on-chain activities are becoming more active.

ENA buying power shows a strong Rebound

After nearly two weeks of sluggish trading, buyers have made a strong return to the market.

According to Coinalyze data, ENA has recorded positive values for two consecutive days, which is the first time in 10 days. On July 19, the buying volume reached 105.31 million, surpassing the selling volume of 105.02 million.

(Source: Coinalyze)

This trend continued into the second day, with buying volume reaching 106.12 million, while selling volume decreased to 91.98 million. Thus, the market bid-ask spread was 294,000 and 1.414 million respectively, clearly indicating strong accumulation activity in the spot market.

Derivatives Market Bets on Rising Trend

In addition, according to Coinalyze data, the long-to-short ratio of ENA has soared to 2.58, indicating that long positions hold an absolute advantage. This suggests that investors are quickly seizing the opportunity to open long positions.

Specifically, long positions account for 72.09% of the total futures contracts, while short positions only account for 27.9%. Over the past week, the aggregated funding rate has remained positive, further confirming this trend.

(Source: Coinalyze)

When the demand for long positions in futures contracts increases, it means that investors are actively betting on a price rise.

(Source: Trading View)

Can ENA Maintain Its Bullish Momentum?

Analysis suggests that with the rebound in purchasing power, the rise trend of ENA will continue to strengthen.

It is worth noting that ENA has broken through the long-term moving average (Long-Term MA) for the first time since February. Specifically, the current price is above the 200-day moving average (MA) of $0.4417 and the 200-day exponential moving average (EMA) of $0.41.

A price breakout above the long-term moving average usually indicates a strong upward trend and may continue. However, to maintain a positive outlook, ENA needs to decisively close above the 200-day moving average.

If successful, ENA may continue to move towards the next significant resistance area near $0.68. Conversely, if the trend is rejected and the price retraces, the potential support area will be around $0.41.

(Source: Trading View)