Ethena (ENA) has been gaining significant attention in the cryptocurrency space, especially after a notable whale move that could signal further price appreciation. A newly created wallet recently acquired a massive 5.29 million ENA tokens, valued at $5.92 million. This acquisition, which took place on December 18, 2024, could be the catalyst for a potential 40% rally, as traders and analysts are closely watching ENA’s price action and technical indicators.
On-chain data, tracked by blockchain analytics firm Spot on chain, revealed that the newly created wallet obtained the ENA tokens at an average price of $1.12 from Binance. This large-scale acquisition has caught the attention of investors, especially given the broader market sentiment, which is currently mixed. While major cryptocurrencies like Bitcoin (BTC) and Ripple (XRP) are showing strong upward momentum, other assets are struggling, leading to some uncertainty in the market.
The whale’s acquisition could indicate strong future demand for ENA, especially considering the substantial volume of tokens acquired. While the broader crypto market remains volatile, the move by this whale suggests that there is confidence in ENA’s future price movement.
On-chain metrics further indicate that long-term holders of ENA are accumulating tokens, signaling a positive outlook. According to data from Coinglass, there has been a significant outflow of ENA tokens from exchanges, totaling $6.68 million worth of ENA. This outflow, which sees tokens moving from exchanges to private wallets, suggests potential upside momentum for the asset. In many cases, such outflows are considered a bullish signal, as it indicates that traders are holding onto their assets in anticipation of higher prices.
The outflow data adds to the already bullish sentiment surrounding ENA. In addition to the whale’s move, the Long/Short Ratio for ENA stands at 1.25, signaling strong bullish sentiment among traders. Currently, 55.57% of top traders in the market are holding long positions, while only 44.43% are shorting the token. This ratio indicates that more traders are betting on a price increase for ENA, further supporting the bullish case.
From a technical perspective, ENA is currently retesting a critical breakout level near $1.05. This level has proven to be important, as it marked a previous resistance point that ENA successfully broke above. According to technical analysis by AMBCrypto, if ENA can maintain its price above this key level, there is a strong possibility that it could surge by 40%, reaching its next resistance level at $1.50. This price increase could also bring ENA closer to its all-time high, depending on broader market conditions and continued bullish sentiment.
Adding to the positive technical outlook, ENA’s Relative Strength Index (RSI) remains below the overbought zone. This suggests that ENA still has room to rise in the coming days, without the risk of an immediate pullback due to overbought conditions.
At the time of writing, ENA was trading near $1.06, marking an 8.5% decline over the past 24 hours. This recent pullback in price has coincided with a decrease in trading volume, which dropped by 40% during the same period. The reduced trading activity could indicate that investors and traders are waiting for more clarity on the market’s direction before making further moves. While this short-term correction may have some traders cautious, it may also present an opportunity for those looking to enter the market before ENA potentially breaks higher.
Despite this price dip, the overall sentiment remains bullish due to the accumulation of ENA by long-term holders and the continued support from whales. If ENA can hold its ground above key levels like $1.05, the likelihood of a further surge remains strong, with the potential to reach new highs in the coming weeks.
As Ethena continues to build momentum, the token’s performance in the coming days will depend heavily on whether it can maintain support above the $1.05 level. The presence of large holders and bullish sentiment from traders suggests that ENA could be poised for a breakout. If the whale’s move is any indication, ENA could see a 40% surge to its next resistance level at $1.50, setting the stage for even more gains if the upward trend continues.
However, the broader cryptocurrency market remains volatile, and price corrections are always possible. Traders and investors should closely monitor key technical levels and on-chain metrics to gauge whether ENA can sustain its upward trajectory.
In conclusion, Ethena (ENA) is in an exciting position, with strong support from whales and growing interest from traders. The next few weeks will be critical in determining whether ENA can capitalize on its bullish momentum and reach new price levels. For those interested in ENA, the key levels to watch are $1.05 for support and $1.50 as the next major resistance level. If ENA can stay above $1.05, a 40% surge could be on the horizon, making it a token worth keeping an eye on.
A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5
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