ENA Price Analysis: Bullish Sentiment Despite Short Squeeze, Network Activity Surges

Ethena [ENA] has experienced significant growth in network activity, with new and active addresses surging over the past week.

Ethena [ENA] price soared by over 10% on 23rd February, continuing its strong rally. This surge was largely driven by a surge in network activity and market optimism.

Here's a closer look at ENA's price analysis and key levels to watch.

At the time of writing, ENA was trading at $0.464, showing a 10.16% surge in 24 hours and a 257.25% increase in 24-hour trading volume. This surge in demand for the coin pushed its price higher.

ENA price action analysis: Key levels to watch

ENA's price action showed that the coin has been in a period of correction since its peak in early January. At the time of writing, ENA was approaching a critical support level of $0.455, which traders should keep an eye on.

If Ethena can maintain a close above this level, it could rally toward the next resistance point at $0.60658. Further resistance lies at $0.76939 and $1.00290, which will be crucial in determining ENA's ability to reach new highs. However, if the price drops below $0.455, it could continue to decline toward $0.39235.

A surge in network activity

Over the past week, Ethena has also seen a substantial increase in network activity, with new addresses growing by 328.77% and active addresses rising by 104.60%.

This surge indicates that more users are engaging with the coin, suggesting growing interest. The increasing number of zero-balance addresses further supported this positive trend, indicating that ENA is attracting both new and existing participants.

Hence, this uptick in user activity could play a significant role in pushing ENA's price higher, especially if this trend continues in the coming days.

Insights from market positions

At the time of writing, 67.17% of ENA addresses were "in the money," holding positions above the press time price of $0.464. So, a large portion of ENA holders were in a favorable position, reflecting investor confidence.

Meanwhile, only 10.54% of addresses were "out of the money," indicating that the majority of holders have seen returns on their investments.

The concentration of "in the money" positions adds to the overall stability of ENA, suggesting that most investors are holding onto their assets rather than selling.

ENA: Bullish sentiment despite short squeeze

Ethena's Open Interest saw a notable increase of 6.61%, reaching $364.14 million. This growth in Open Interest indicates increasing confidence in the market, with more participants taking positions.

Interestingly, on the 22nd of February, total liquidations amounted to $250.04K in short positions and $176.86K in long positions.

The larger liquidations of short positions suggested that market sentiment was shifting toward the bulls. As a result, upward pressure on ENA's price is likely to continue as short traders are forced to cover their positions.