By choosing Ethena (ENA) as the first altcoin to invest in, Mellow Finance has made a big bet at a time when the market is in a correction phase.
The fund has issued 15.147 million ENA, worth approximately 4.48 million USD, from Bybit into a personal wallet.
Bottom fishing… or supporting the future?
The first-time holding 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 amid the altcoin performance being quite poor in the market.
Signals from the ENA derivatives market
Data from the ENA derivatives market shows that the funding rate has recovered into positive territory on major exchanges.
The funding rate turned positive on major platforms, including Bitmex, Hyperliquid, and Bybit, signaling that long traders are paying to hold their positions.
This is an important change after a prolonged series of negative funding rates in April.
In addition, the Delta order book liquidity aggregate has once again increased to a positive level, around $551,460, a few days after a sharp drop on June 10.
The influx of capital around the $0.29 – $0.30 mark indicates new buying interest, even as the overall market appears cautious.
Green delta bars indicate that there is a revival of interest. This influx of capital has kept the price 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 important risk areas.
There is $262,000 in liquidation leverage under $0.28, a range that could act as short-term support if the bulls successfully defend it.
Meanwhile, short liquidation orders piled 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 trust among traders.
