Bitcoin’s explosive rally to a new all-time high above $117,000 has triggered a market-wide resurgence in trading activity, lifting altcoins.
One of the biggest beneficiaries of this bullish wave is Ethena’s native token ENA, which has surged 25% in the past 24 hours. This makes it the top gainer in the market today.
ENA Leads the Charge as Spot Demand and Derivatives Activity Explode
Now trading at its highest level in 30 days, ENA’s rally comes with a significant spike in investor interest. Spot inflows into the altcoin have surged to a two-month high, signaling a rapid increase in demand from traders looking to ride the bullish momentum of the past 24 hours.
According to data from Coinglass, net inflows into ENA spot markets sit at $3.37 million on Friday, marking the token’s highest single-day inflow since May 12. This reflects a sharp uptick in investor demand and growing confidence in ENA’s short-term prospects.
Spot inflows signal investor confidence and often confirm the positive shift in market sentiment toward an asset.
When net inflow climbs, there is an increase in the purchase of that asset in the spot market, where transactions are settled immediately. This indicates a rise in demand for the asset, as buyers are willing to acquire it at the current market price.
Moreover, ENA’s futures open interest surged 8% over the past 24 hours. It is $425 million at press time — its highest level since June 16.
ENA Futures Open Interest. Source: Coinglass
An asset’s futures open interest measures the total value of its outstanding futures contracts that have yet to be settled. When it increases, new money is entering the market.
This confirms the growing conviction in ENA’s upward movement, especially as traders position themselves to benefit from further price appreciation.
It is reflected in ENA’s funding rate, which stands at 0.0062% at the time of writing. Funding rate is a mechanism used in perpetual futures contracts to keep their prices aligned with the underlying spot market.
ENA’s positive funding rate indicates that long-position holders are paying short-sellers a premium, suggesting a bullish sentiment among futures market participants. It highlights traders’ willingness to maintain leveraged long positions in anticipation of further price gains.
With Bulls in Control, ENA Could Break Through to Multi-Week Highs
Readings from the ENA/USD one-day chart show the altcoin trading significantly above its 20-day exponential moving average (EMA). At press time, this key moving average forms dynamic support below ENA’s price at $0.28.
The 20-day EMA measures an asset’s average price over the past 20 trading days, giving weight to recent prices. When price trades above the 20-day EMA, it signals short-term bullish momentum and suggests buyers are in control.
If this continues, ENA could extend its gains and rally toward $0.37. A successful breach of this resistance level could drive the altcoin to $0.41.
However, if profit-taking strengthens, this bullish outlook will be invalidated. If selling pressure increases, ENA could witness a pullback and attempt to break below the support formed at $0.32.
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