ENA's Bullish Streak: Derivative Traders at the Wheel
Futures traders propel a 17% surge in ENA's price, disregarding apprehensions over a potential sell-off.
While the crypto world might be buzzing about the unusual sell-off of ENA from spot traders and whales, it's the sneaky derivative traders that are driving the price surge of this cryptocurrency.
In the past 24 hours, ENA has jumped an impressive 17%, defying its long-term downslide by 11.81%. And guess who's been fueling this bullish swing? None other than our cunning derivative traders.
Our in-house analysis points to a surge in demand from derivative traders, while spot traders and whales continue to sell. So much for a coordinated market, huh?
Riding the Wave: Spot and Whale Traders Bailing Out
The crypto water can get rough for the little guy, but it's the big players, like spot traders and large investors, that have been taking a beating. Coinglass's Exchange Netflows shows that these market bigwigs sold off a hefty $2.26 million worth of ENA in the past day.
It's not just them, either. Large investors, who held a chunk of ENA, have joined the selling frenzy, unloading 4.18 million ENA worth $1.42 million.
Compared to this bearish trend, the soaring ENA prices seem puzzling, but don't be fooled: these sell-offs might just be the big boys taking profits.
Derivative Traders to the Rescue
While spot traders and whales seem bearish, derivative traders are managing to maintain a bullish position. Why? Well, all key metrics are flashing signs of an upward trend.
Open Interest and the long-to-short ratio have kissed each other good morning, suggesting that unsettled derivatives contracts in the market are dominated by buyers who are leading overall trading volume.
In fact, Binance traders are the ones leading the charge, with their long-to-short ratio reaching a whopping 2.0377.
Moreover, derivative traders who bet against ENA's rally? Ouch. They've been burnt big time, with $905,890 worth of their short positions being liquidated in the process.
Fundamentals Galore
If you thought the derivatives market was driving the ENA surge alone, guess again. Strong fundamentals are playing a significant role too.
A recent analysis by ENA's team showed that their yield-bearing synthetic dollar, sUSDe, outperformed other asset classes, including BTC, 3-month T-bills, the S&P 500, and Ethereum (ETH).
This superior performance might've given savvy investors a confidence boost, encouraging them to dive headfirst into ENA's rising tide, opening long positions and helping to fuel the altcoin's price hike.
- Despite the unusual sell-off of ENA from spot traders and whales, derivative traders are the ones driving the price surge of this cryptocurrency.
- In the past 24 hours, ENA has defied its long-term downslide, outperforming by 17%, thanks to the demand from derivative traders.
- Coinglass's Exchange Netflows shows that spot traders and large investors sold off a substantial amount of ENA, totaling $2.26 million worth.
- Derivative traders, on the other hand, are maintaining a bullish position, with their long-to-short ratio suggesting a dominance of buyers in the market.
- Binance traders are leading the charge, with their long-to-short ratio reaching a significant 2.0377.
- Meanwhile, derivative traders betting against ENA's rally experienced substantial losses, with $905,890 worth of their short positions getting liquidated.
- Strong fundamentals also play a significant role in ENA's surge, as ENA's yield-bearing synthetic dollar, sUSDe, outperformed other asset classes.
- This superior performance might have boosted investor confidence, encouraging them to invest in ENA, contributing to the altcoin's price hike.
