- The financing percentages of ENA fell to -42%, which emphasizes the increasing demand for short positions.
- An inflow into short positions showed a bearish market sentiment, but an unexpected upward trend could lead to forced buying.
Ethena [ENA] acted at $ 0.715, at the time of press, after 14% dropping in 24 hours. The recent decline has expanded the Bearish Streak of Altcoin, which was 21% in seven days.
This downward trend has created a unique situation on the futures market, with the financing rates from ENA falling to -42%. This suggests a high demand for short positions, since sellers bet on further decreases.
These negative rates further show that traders who take up long positions are paid by exchanges to retain their positions that can precede a bullish reversal.
Source: Coinglass
An inflow of short positions into the market, although Beararish, could lead to a short squeeze scenario. If ENA makes a sudden reversal and activates a short liquidation event, the forced closure of these positions leads to the purchasing pressure, causing the price to gather.
Despite this bullish view, the daily graph of Ena suggests that bears remain control.
Analysis of the falling parallel pattern of Ethena
Ena acted within a decreasing parallel pattern on his daily graph, an indication of a bearish trend. At the time of writing, Ena had broken the centerline of this pattern, with a drop under the lower trendline set to speed up the downward trend.
The price decrease appears to come from the sales pressure after the relative strength index (RSI) has fallen to 35. This RSI has been at the lowest level since the beginning of September, which further emphasizes the rapid increase in sales activity.
Source: TradingView
The negative indicator of Balance volume (OBV) also shows that traders do not buy the dip, because the sales pressure outweighs the purchasing pressure.
This indicates that ENA is in a strong downward trend that can cause a further price fall, unless the trend turns.
In order for a bullish reversal to take place, ENA must break the resistance level at the 0.5 Fibonacci level ($ 1.017). A breakthrough of the upper trend line can stir profit to $ 1.31.
Daily active addresses fall to a low layer of two months
In addition to a return of buyers, the other factor that could help an upward trend for ENA is an increase in network activity. However, at the time of the press, the use of the network was a decrease, which could exercise further down.
Source: Santiment
Read Ethena [ENA] Price forecast 2025-26
According to Santiment, the daily active addresses on the Ethena network have fallen to 1,031, the lowest level in two months.
This indicates a reduced interest in the Altcoin, which leads to a negative market sentiment.