Ethena [ENA] soars 19% – But this could be a bull trap IF…
Key Takeaways
ENA’s 19.6% surge got here with a $244 million Open Curiosity soar and bullish spot inflows. Nevertheless, liquidity clusters under worth depart overleveraged longs susceptible to reversals, elevating the danger of a sudden bull lure.
Ethena [ENA] outperformed many of the market over the previous 24 hours, climbing 19.6% to $0.7363 and rating because the second-largest gainer, per CoinMarketCap data at press time.
Liquidity influx hints at a rally being shut, and that the altcoin might multiply its beneficial properties quickly.
Nevertheless, AMBCrypto’s evaluation discovered this is also a bull lure, with consumers at this stage prone to important losses.
Open Curiosity soar reignites dealer urge for food
ENA’s acquire up to now day adopted an enormous liquidity influx into the perpetual market, as Open Curiosity (OI) surged in response to CoinGlass.
Open Curiosity tracks the greenback worth of unsettled perpetual contracts out there. At press time, the altcoin recorded a $244 million improve after an 18% soar in OI, pushing it to $1.3 billion.
Supply: CoinGlass
That’s not all—evaluation of the OI Weighted Funding Charge reveals the market leaning bullish, because it returned to optimistic territory.
Every time there’s a optimistic studying—on this case, 0.0082%—together with a continued rise, it suggests extra bull contracts from consumers than from sellers.
Spot flows paint a blended image
Spot buyers are displaying blended sentiment, with each short- and long-term outlooks at play.
Within the brief time period, there’s been a $12 million liquidity net outflow within the newest, portray a bearish dynamic for worth motion. Nonetheless, AMBCrypto discovered the market might stay bullish.
Supply: CoinGlass
A broader view reveals extra web influx of ENA up to now week—a bullish signal. On the time of writing, there’s $5.7 million extra influx than outflow, displaying the market dynamic nonetheless leans bullish.
Nevertheless, additional evaluation reveals merchants ought to stay cautious, because the bullish transfer might nonetheless be a lure.
Bull lure forward?
The Liquidation Heatmap displayed dense liquidity clusters under the present worth zone. Such positioning can create vulnerability if worth sweeps liquidity above earlier than reversing decrease.
Supply: CoinGlass
Presently, brief merchants took the larger hit, with $4.61 million in shorts liquidated in comparison with $730,000 in longs.
Nevertheless, if the market flips, overleveraged longs might turn out to be the following targets, doubtlessly triggering a liquidity cascade.
Whereas technical and on-chain knowledge lean bullish, the focus of liquidity under present ranges leaves room for sharp reversals. If longs stay closely uncovered, the present uptrend might flip shortly right into a bear-led transfer.
