Ethena’s native token, ENA, has kicked off August with a fresh burst of bullish momentum. The altcoin jumped 14% in the past 24 hours, bringing its current trading price to $0.670. This move crowns a spectacular month for ENA, which has now gained over 155% in July, emerging as one of the best-performing cryptocurrencies of the month.
The sustained rally marks not just a price breakout but a significant surge in investor confidence, reinforced by strong on-chain and futures market data.
$1.4 Billion Weekly Volume Validates Market Demand
One of the strongest confirmations of ENA’s uptrend is the sharp spike in its trading activity. According to data from Santiment, ENA recorded a weekly trading volume of $1.42 billion, marking a 700% increase and the highest level seen in over a year.
High volume accompanying price rallies typically signals strong market conviction. It shows that the movement is not just the result of low-liquidity pumps or isolated trades but backed by real buying (and selling) activity. In ENA’s case, this volume surge suggests a genuine demand behind its ongoing ascent, bolstering the chances of sustained upward momentum.
Futures Market Signals Growing Investor Confidence
The bullish sentiment is further echoed in the derivatives market, where ENA has witnessed a significant 30% surge in open interest over the last 24 hours. As of now, ENA’s open interest stands at $1.15 billion, reflecting increased activity and inflows from both institutional and retail traders.
Open interest refers to the total number of outstanding derivative contracts (like futures) that have not yet been settled. When it increases in tandem with price, it often indicates that new money is entering the market, typically from traders expecting further price appreciation.
In addition, ENA’s long/short ratio has climbed to 1.05, its highest in a month. This ratio reveals that there are more long positions than shorts, pointing to a clear bullish bias among traders. A figure above 1 indicates that the market majority is betting on a price rise, adding another layer of optimism to ENA’s outlook.
Technical Indicators Point to Continued Rally Toward $0.77
From a technical perspective, ENA’s chart is sending strong bullish signals. The token’s MACD (Moving Average Convergence Divergence) indicator remains in a bullish crossover pattern with the MACD line positioned above the signal line.
This crossover is often viewed as a reliable indicator of continued upward price momentum. If ENA maintains its current trajectory, analysts believe it could rally toward the next resistance level of $0.77 in the coming weeks.
However, while the sentiment remains optimistic, traders are also advised to watch key support levels. If demand weakens or bearish pressure increases, ENA could retreat to $0.64, and further downside could push it to $0.48.
ENA Positioned for More Upside, But Volatility Remains
Ethena’s impressive July performance and strong start to August place it among the top altcoins to watch in the current crypto cycle. With on-chain data showing rising trading volume, futures markets signalling increased long exposure, and technical indicators aligning in favour of bulls, ENA seems well-positioned to extend its rally.
Still, as with any sharp rally, market volatility remains a risk, especially if broader crypto sentiment shifts or if profit-taking emerges. Traders and investors should keep a close eye on volume trends, support levels, and derivatives data to gauge the strength and sustainability of ENA’s ongoing momentum.
