Main to remember
The overvoltage of 19.6% ENA came with an open interest of $ 244 million and bullish entrances. However, liquidity clusters below the price leave long stay vulnerable to inversions, which increases the risk of a sudden bull trap.
Ethena (ENA) has outperformed most of the market in the last 24 hours, climbing $ 19.6% to $ 0.7363 and ranking as the second winner, in accordance with the CoinmarketCap data at the time of the press.
The influx of liquidity suggests a rally nearby and that Altcoin could soon multiply its earnings.
However, Ambcrypto’s analysis revealed that this could also be a bull trap, with buyers at this level at risk of significant losses.
Open interest REGNITS TRADER APPTITITE
ENA’s gain in the last day followed a massive influx of liquidity on the perpetual market, while the open interest (OI) jumped according to Coinglass.
The open interest follows the value in dollars of unstable perpetual contracts on the market. At the time of the press, Altcoin recorded an increase of $ 244 million after a jumper of 18% of the OI, pushing it to $ 1.3 billion.
Source: Coringlass
That’s not all – the analysis of the weighted financing rate shows the bullish market, because it has returned to a positive territory.
Whenever there is a positive reading – in this case, 0.0082% – with a continuous increase, this suggests more bull’s bull contracts than sellers.
Spot flows comb a mixed image
Spactive investors show a mixed feeling, with short and long -term perspectives in play.
In the short term, there was a net liquidity outing of $ 12 million in the last, painting a downward dynamic for the price movement. However, Ambcrypto noted that the market could remain bullish.
Source: Coringlass
A wider view shows more net influx of ENA during last week – a bullish sign. At the time of writing the editorial staff, there are $ 5.7 million more than outings, showing that market dynamics are still leaning up.
However, a more in -depth analysis shows that traders should remain cautious, because the Haussier movement could always be a trap.
Bull Trap to come?
The thermal liquidation card Displayed dense liquidity clusters below the current price area. Such positioning can create vulnerability if the price sweeps liquidity above before reversing lower.
Source: Coringlass
Currently, short traders have taken the largest blow, with $ 4.61 million in liquidated shorts, compared to $ 730,000 long.
However, if the market turns around, long surfaces could become the following targets, potentially triggering a liquidity cascade.
While technical and chain data are optimistic, the concentration of liquidity below current levels leaves room for net inversions. If longs remain strongly exposed, the current upward trend could quickly turn into a movement led by the bear.
