By choosing Ethena (ENA) as their first altcoin to invest in, Mellow Finance has made a significant bet at a time when the market is undergoing correction.
The fund has issued 15.147 million ENA, worth about $4.48 million, from Bybit into a personal wallet.
Bottom fishing... or supporting the future?
The initial hosting of this altcoin is a sign that the company is very confident in the future of Ethena Labs.
Mellow Finance's strategy implies that the fundamental value factors of ENA are being undervalued.
This move also indicates the organization’s confidence in Ethena’s ability to develop future crypto infrastructure. This could bring new hope in the context of the altcoin performance being quite weak in the market.
Signals from ENA’s derivatives market
Data from ENA's derivatives market shows that the funding rate has recovered into positive territory on major exchanges.
Funding rates have turned positive on major platforms, including Bitmex, Hyperliquid, and Bybit, signaling that long traders are paying to hold their positions.
This is a significant shift after a prolonged series of negative funding rates in April.
Additionally, the Delta order book liquidity synthesis has once again risen to a positive level, around $551,460, a few days after a sharp decline on June 10.
The influx of capital around the $0.29 – $0.30 mark indicates new buying interest, even as the broader market appears cautious.
Green delta bars indicate that interest is reviving. This inflow of capital has kept prices around $0.30 and suggests that a short-term bottom may be forming.
Key liquidation levels to watch
The ENA/USDT liquidation chart on Binance shows crucial risk areas.
There is $262,000 of liquidation leverage below $0.28, a zone that could serve as short-term support if the bulls successfully defend it.
Meanwhile, short liquidation orders piling up above $0.30 create an opportunity for a short squeeze if the price breaks through.
In summary, the closer ENA trades to these levels, the more explosive the next move could be.
Whether it's a breakout or a price trap depends on the level of confidence among traders.