This Altcoin on the Turks’ Radar Could Jump to These Levels!

Crypto analyst Vinicius Barbosa says Ethena showed surprising negative funding rates on May 18. In this context, the analyst states that ENA is heavily short sold in the derivatives market. He notes that the altcoin price could soon skyrocket in a ‘short squeeze’ as the market’s open interest gains weight towards short positions against ENA.

Altcoin with short squeeze potential: Ethena (ENA)

cryptokoin.comAs you follow from , the market is struggling to find new momentum. However, Bitcoin and most altcoins are struggling to move forward. However, some have suitable conditions for launching. The most appropriate indicator for a short squeeze warning on Ethena is the massive negative funding rate. CoinGlass data shows that ENA short sellers are paying 268% APR to long traders.

Funding Rate Heat Map: ENA. Source: ENA: CoinGlass

Moreover, Ethena currently has the 25th largest open interest (OI) among all cryptocurrencies, with $194.21 million in open interest. ENA’s OI stands out at 16% of its $1.19 billion market cap, one of the largest OI/MCap ratios.

ENA derivatives market data. Source: CoinGlass

Short squeeze price target for ENA

At the time of writing, ENA was trading slightly higher at $0.75. While the 24-hour open interest rate increased by 12.5%, the volume increased by 35.48% and reached 541.55 million dollars. Interestingly, during this period, a short position of $283.67 million was opened with a dominance of 50.54%. There are two important target price zones for the altcoin in the event of a short squeeze. First, expect a short liquidity pool of $0.83 to $0.89, with most liquidations at $0.84. The second key level is $1.08. Reaching these price targets could give Ethena investors gains between 11% and 44% from its current price.

ENA Liquidation Heat Map, 1 month. Source: CoinGlass

However, the project has raised significant concerns in the crypto community. So there are some questions about Ethena’s long-term fundamentals.

Kminor playerssupport of ‘Ethena’made popular the

In summary, Ethena is a protocol built on Ethereum and has a governance token called ENA. Former Bitmex CEO Arthur Hayes personally supported the altcoin project. That’s why its popularity increased rapidly. This was followed by huge support from key players. Some skeptics have compared this project to the rise and value proposition of Terra (LUNA), which culminated in its collapse in 2022.

Therefore, current short interest may be a bearish indicator of Ethena’s fundamentals rather than short-term speculation. It is possible that this could prevent a short squeeze despite all the signals. However, it is impossible to know whether Ethena will be a huge success or a serious failure. Investors interested in ENA should understand the risks and make informed future decisions.

The opinions and predictions in the article belong to the analyst and are definitely not investment advice. We strongly recommend that you do your own research before investing.

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