Ethena (ENA) has recorded an impressive growth of 30.98% in the past week, from $0.51 to a 7-month high of $0.855. The strength of ENA is reflected not only on the weekly chart but also spreads across the monthly and yearly charts, with increases of 143% and 152% respectively.
At the time of writing, ENA is trading at $0.8112, up 9.05% in just the last 24 hours. This growth is supported by increasing network activity, positive market sentiment, and stable capital flow.
Naturally, investors are currently stepping into the next bullish phase of ENA.
Network adoption reaches record levels
Data from Santiment shows that Ethena has recorded positive DAA price divergence for seven consecutive days. Here, it is important to note that prolonged positive DAA divergence is a sign that underlying demand is increasing, especially as network usage and interaction are also on the rise.
In such cases, assets are often undervalued compared to the level of network activity. This usually implies that there is more room for growth as prices begin to align with market demand.
At the time of writing, on-chain profits seem to reinforce this view, with the ratio of profitable trades to losing trades at 4.16, featuring 75.38 million profitable trades compared to 18.08 million losing trades.
Are whales cautious at this time?
Surprisingly, despite the price increase, Ethena whales have yet to appear in the market. Data on the average spot order size from CryptoQuant shows a complete absence of whales in the spot market.
According to the mentioned chart, there have been no large whale orders in the last 30 days. Additionally, data on the average order size of futures contracts also indicates a lack of similar large positions.
This pattern is also reflected in the futures market, where whales have also taken a step back – a sign that speculative activity from large entities is decreasing.
As whales withdraw from both the spot and futures markets, this reflects a cautious approach as they wait for momentum to take action.
Retail investors drive buying activity
Finally, it is noteworthy that retail investors have dominated recent spot trading activity. According to Coinalyze, Ethena has recorded three consecutive days of positive buy-sell volume (Delta). At the time of writing, ENA recorded 84.2 million in buy volume compared to 75 million in sell volume.
As a result, the spot market has witnessed a positive buy-sell ratio of 8.33 million – a slight increase from the previous day's 8.09 million. Generally, a positive Delta indicates higher buying pressure compared to selling pressure, which is often a sign of bullishness on the chart.
ENA price prediction
ENA recently bounced back from a recent low of $0.55 and successfully defended the support level of $0.60. Shortly after, the price surged, with the Parabolic SAR falling below the price candles. Typically, when the price rises above the SAR, it indicates that buyers are in control and upward momentum can be very strong. Furthermore, the Stochastic RSI has risen to 85.37, further reinforcing the presence of buyers.
If buyers maintain the price above $0.70, the possibility of pushing the price to $1 is entirely feasible. However, if this price zone cannot be held, ENA may revert to $0.55.