Ethena (ENA) has recently captured significant attention in the cryptocurrency market, experiencing a remarkable price surge to a 7-month high. This impressive ascent, marked by over 30% gains in a single week and triple-digit increases monthly, prompts a closer look into the forces propelling its rapid growth.
Bolstering Fundamentals and Network Health
ENA's rally isn't merely speculative; it's underpinned by robust on-chain metrics indicating strengthening fundamental demand. Data reveals Ethena has sustained positive Price DAA Divergence for seven consecutive days, signaling that the asset may be undervalued relative to its growing network usage and engagement. This health is further corroborated by impressive on-chain profitability, where transactions in profit significantly outweigh those in loss, demonstrating a highly active and successful user base.
Retail Power Drives the Surge, Whales Remain Cautious
Interestingly, Ethena's recent price action appears to be primarily fueled by the strong conviction of retail traders, rather than large institutional players. Analysis shows a notable absence of significant whale orders in both spot and futures markets, suggesting a cautious stance from these larger entities. In contrast, retail participants have dominated buying activity, contributing to consecutive days of positive Buy-Sell Delta, indicating a persistent and growing buying pressure that is a key precursor to continued price appreciation. Technical indicators, such as the Parabolic SAR and Stochastic RSI, further confirm this bullish momentum, reinforcing the presence and control of buyers in the market.
