Ethena (ENA) has posted a sharp 14% decline in the last 24 hours, significantly outpacing the broader cryptocurrency market, which saw a more modest drop of 2.77% in overall market capitalization. According to market analysts, this sharp downturn has been largely attributed to aggressive selling in the derivatives market.
Despite this, data from CoinGlass and CoinMarketCap suggests that spot traders, particularly retail investors, may be using the dip as a strategic entry point.
Retail Investors Accumulate Over $19M in ENA
While ENA struggles on the price charts, on-chain data reveals growing bullish sentiment among spot traders. CoinMarketCap’s sentiment tracker saw a 4% spike in bullish votes, rising from 80% to 84% within 24 hours.
Supporting this optimism, AMBCrypto reported that spot traders have accumulated approximately $4.63 million in ENA in the past day alone. Over the last four days, this figure stands at $19.07 million, indicating increasing conviction among dip-buyers.
Binance, which commands nearly half of ENA’s $1.18 billion in daily trading volume, recorded a Long-to-Short ratio of 2.96 — a strong signal of bullish positioning among its users.
Bearish Futures Traders Drive Down Funding Rates
Contrasting the positive spot activity, the Futures market continues to lean bearish. ENA’s Open Interest fell by 13.79% to $381.29 million, signaling an exodus from leveraged positions. Additionally, the Funding Rate dipped to -0.0009%, confirming that short sellers are currently paying to maintain their positions.
These indicators suggest that the downward price pressure has been primarily driven by derivatives market participants.
$0.35 Emerges as Potential Price Target
According to AMBCrypto’s analysis of the CoinGlass liquidation heatmap, there is a notable liquidity cluster forming around the $0.35 mark. This cluster represents a concentration of unfilled market orders and could act as a short-term magnet for price movement.
Also Read: Ethena (ENA) Tests $0.37 Resistance as Breakout Looms
With spot traders continuing to accumulate and derivative pressures possibly easing, ENA’s price may gravitate toward this level in the coming sessions — assuming broader market conditions stabilize.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
