Ethena’s native token, ENA, is currently experiencing a surge in network activity, with a notable 328.77% increase in network engagement over the past week. This surge in network activity, paired with rising market sentiment and bullish investor behavior, has raised speculation about whether ENA’s price will continue to rise.

Key Price Levels to Watch for ENA

At the time of writing, ENA’s price is at $0.4611, showing a significant 10.16% increase in just 24 hours. This jump is accompanied by a 257.25% rise in its trading volume, which signals growing interest and demand for the token.

Despite this positive price movement, ENA has been in a correction phase since its peak in early January. Currently, it is trading near a critical support level of $0.455. If the price holds above this level, there is potential for a rally towards resistance at $0.60658. Further resistance levels are identified at $0.76939 and $1.00290. These resistance points will be crucial in determining if ENA can break through and reach new highs.

On the other hand, if ENA’s price falls below $0.455, a deeper correction to $0.39235 could be in the cards. Traders will be keeping a close watch on how the token performs around these key support and resistance levels.

Surge in Network Activity

Ethena’s network activity has been a standout driver of its recent growth. In the past week, new addresses for ENA have increased by a massive 328.77%, and active addresses have risen by 104.60%. These figures indicate that more users are engaging with the token, a sign of growing interest and adoption. Additionally, the increasing number of zero-balance addresses suggests that ENA is attracting both new and existing participants, further fueling positive sentiment.

This surge in network activity is a critical factor that could drive the price of ENA higher in the coming days, particularly if these trends continue. More user engagement often leads to greater demand, which in turn pushes the token’s price upward.

Investor Sentiment and Market Positions

At the moment, 67.17% of ENA addresses are “in the money,” meaning they hold positions above the current price of $0.464. This is a clear indicator of strong investor confidence in ENA, as the majority of holders are seeing returns on their investments. Only 10.54% of addresses are “out of the money,” suggesting that the vast majority of ENA investors are not under water, contributing to the stability of the asset.

The concentration of in-the-money positions reflects a stable investor base, with many holders opting to keep their assets rather than sell them. This suggests that the market sentiment surrounding ENA remains positive, which is a bullish signal for the token’s future prospects.

Bullish Sentiment Despite Short Squeeze

Another key factor supporting the bullish sentiment around ENA is the increase in Open Interest, which has risen by 6.61%, reaching $364.14 million. This indicates growing market confidence as more traders take positions on ENA.

Additionally, there have been notable liquidations in the market. On February 22, a total of $250.04K in short positions and $176.86K in long positions were liquidated. The larger liquidation of short positions suggests that sentiment is shifting toward the bulls. When short traders are forced to cover their positions, it can create upward pressure on the token’s price, further fueling the potential for a rally.

Conclusion

Ethena’s ENA token is showing signs of strong growth, supported by both increasing network activity and bullish investor sentiment. The surge in Open Interest, combined with rising market confidence and short liquidations, points to further upside potential for the token. If ENA can break through the key resistance levels at $0.60658 and beyond, it could continue its upward momentum toward new highs.

However, resistance remains a key hurdle in the near term. Traders will need to monitor these levels closely as ENA approaches critical price points. Overall, if the positive trends in network activity and market sentiment continue, it’s likely that ENA could maintain its momentum and see further gains in the near future.