Ethena (ENA) has garnered significant attention in the crypto space, surging by over 11% in the past 24 hours and pushing its market capitalization to a solid $3.5 billion. This rally is driven by a range of strong technical indicators that suggest the token may have more room for growth in the near future.

Strong Buying Pressure Evident Through Chaikin Money Flow (CMF)

One of the most notable indicators signaling Ethena’s strong bullish momentum is its Chaikin Money Flow (CMF), which recently spiked to 0.36. This marks a substantial improvement from near-zero levels seen just days ago. CMF is a momentum oscillator that evaluates the flow of capital into and out of an asset based on its price and volume. Readings above zero indicate that buying pressure is outweighing selling pressure, and with a CMF of 0.36, Ethena is showing robust positive momentum.

This surge in CMF indicates a substantial inflow of capital, highlighting growing investor confidence in the token’s upward potential. Historically, increasing CMF values correlate with price appreciation, as fresh capital typically supports upward price movement. For the current rally to sustain, the CMF would need to continue rising, signaling that the buying trend remains strong.

Directional Movement Indicator (DMI) Confirms Uptrend

The Directional Movement Indicator (DMI) further supports the idea that Ethena’s price momentum is on a strong uptrend. The Average Directional Index (ADX), which measures the strength of a trend, has risen sharply from 9.9 to 25.6 in just a matter of days. ADX values above 25 indicate a strong trend, signaling that Ethena is in the midst of a solid bullish phase.

The directional indicators (+DI and -DI) provide additional insights. The +DI, which measures the strength of upward price movements, has surged to 42.1, suggesting that buyers are firmly in control. In contrast, the -DI, which tracks downward momentum, remains low at 9.9. This disparity between the two indicators highlights the dominance of the bulls, which bodes well for continued price gains in the short term.

Golden Cross: A Bullish Signal for Future Growth

Another positive technical development for Ethena is the recent formation of a golden cross. This occurs when a short-term moving average crosses above a long-term moving average, signaling a potential shift from a bearish to a bullish trend. The formation of this golden cross indicates that the recent upward momentum could persist and even accelerate in the coming weeks, as it often signals the beginning of sustained price growth.

With this bullish technical signal, Ethena is well-positioned to test critical resistance levels in the short term. The price is currently eyeing a key resistance zone at $1.22. A break above this level could trigger further buying interest, potentially sending the price toward $1.32, which would represent a 13.7% increase from its current position.

Key Support and Risk Levels to Watch

While the momentum is strong, it’s essential to remain cautious of potential pullbacks, especially in volatile markets. Ethena’s support level at $1.12 will be crucial for the continuation of the bullish trend. If the price fails to maintain support at this level, it could face a correction, with potential downside targets at $1.02 or even $0.84.

Traders should keep an eye on the price action near the $1.12 support zone. A drop below this level could lead to further downside pressure, but as long as Ethena holds above this key support, the bullish outlook remains intact.

Rising Social Engagement Signals Growing Interest

In addition to technical indicators, social volume is also an important metric for gauging market sentiment and engagement. Social volume tracks the frequency of mentions of a particular asset across social media platforms, providing insights into the level of interest from both retail and institutional investors. Currently, Ethena’s social volume is on the rise, signaling that the growing investor interest is aligning with the upward price movement.

In the past, a surge in social volume has often preceded continued price rallies. If the social volume continues to rise alongside the strong technical indicators, it could suggest that the current bullish momentum is sustainable and may be poised to push the price even higher.

Network Activity and Investor Confidence

Alongside rising social engagement, there has been an increase in network activity for Ethena. A steady rise in active addresses is indicative of renewed interest and engagement with the token, reinforcing the idea that more investors are becoming active in the market. When network activity rises, it often correlates with higher demand for the asset, supporting the ongoing bullish trend.

The increased network participation, along with positive technical signals and social engagement, reinforces the notion that Ethena’s current price rally is grounded in genuine investor confidence.

Conclusion

Ethena’s recent 11% price surge is driven by several strong technical indicators, including the rise in Chaikin Money Flow (CMF), a surge in the Average Directional Index (ADX), and the formation of a golden cross. These factors signal that the token is experiencing strong bullish momentum, which could continue in the short term. Key resistance levels to watch are at $1.22 and $1.32, while the support at $1.12 will be crucial for maintaining the bullish trend. Additionally, the rise in social volume and network activity further supports the positive outlook for Ethena.

If the current momentum persists, Ethena could see continued growth, making it an exciting token to watch as the market evolves.