Silver

Gold

Ethena

<div class="finbold"> 
 <p class="paragraph">Ethena (ENA) has been heavily shorted in the derivatives market, showing staggering negative funding rates on May 18. The cryptocurrency could suffer a short squeeze soon as the market’s open interest weighs toward short positions against ENA.</p> 
 <p class="paragraph">Notably, the most relevant indicator for a short <a rel="dofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a> <a rel="dofollow" title="alert" href="https://thebittimes.com/tag/alert.html">alert</a> on Ethena is its massive negative funding rate. On that note, Finbold retrieved data from <em>CoinGlass</em> showing ENA short-sellers are paying a 268% APR to long-position traders.</p> 
 <figure class="wp-block-image size-large">
  <img decoding="async" width="1024" height="511" src="https://cdn.thebittimes.com/images/2024/05/18/f4a8919bc210d1a16ee7c8ba94f74c98.webp" alt class="wp-image-176706" srcset="https://cdn.thebittimes.com/images/2024/05/18/f4a8919bc210d1a16ee7c8ba94f74c98.webp 1024w, https://cdn.thebittimes.com/images/2024/05/18/f4a8919bc210d1a16ee7c8ba94f74c98.webp 300w, https://cdn.thebittimes.com/images/2024/05/18/f4a8919bc210d1a16ee7c8ba94f74c98.webp 768w, https://cdn.thebittimes.com/images/2024/05/18/f4a8919bc210d1a16ee7c8ba94f74c98.webp 1536w, https://cdn.thebittimes.com/images/2024/05/18/f4a8919bc210d1a16ee7c8ba94f74c98.webp 1830w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   Funding Rate Heatmap: ENA. Source: <em>CoinGlass</em> / Finbold
  </figcaption>
 </figure> 
 <p class="paragraph">Moreover, Ethena has the 25th largest open interest (OI) among all cryptocurrencies, currently with $194.21 million in open positions. ENA’s OI stands out with 16% of a $1.19 billion market cap, one of the largest OI/MCap ratios.</p> 
 <div class="border border-red-300 rounded-xl p-6 not-prose mb-6"> 
  <h3 class="text-2xl font-black mt-0 flex gap-x-3 mb-5"> 
   <svg width="32" height="32" viewbox="0 0 32 32" fill="none" xmlns="//www.w3.org/2000/svg"> <path d="M4 10.6665V25.3332C4 28.2678 6.392 29.3332 8 29.3332H28V26.6665H8.016C7.4 26.6505 6.66667 26.4078 6.66667 25.3332C6.66667 24.2585 7.4 24.0158 8.016 23.9998H28V5.33317C28 3.8625 26.804 2.6665 25.3333 2.6665H8C6.392 2.6665 4 3.73184 4 6.6665V10.6665ZM8 5.33317H25.3333V21.3332H6.66667V6.6665C6.66667 5.59184 7.4 5.34917 8 5.33317Z" fill="#EF4444"> 
    </path> <path d="M15.996 18.6668L20.4626 14.2815C20.738 14.0166 20.9571 13.6989 21.1068 13.3473C21.2564 12.9957 21.3336 12.6176 21.3336 12.2355C21.3336 11.8534 21.2564 11.4752 21.1068 11.1236C20.9571 10.7721 20.738 10.4543 20.4626 10.1895C19.9074 9.64148 19.1587 9.33422 18.3786 9.33422C17.5985 9.33422 16.8498 9.64148 16.2946 10.1895L15.996 10.4801L15.6973 10.1881C15.1423 9.64023 14.3938 9.33301 13.614 9.33301C12.8341 9.33301 12.0856 9.64023 11.5306 10.1881C11.2552 10.453 11.0361 10.7707 10.8865 11.1223C10.7368 11.4739 10.6597 11.852 10.6597 12.2341C10.6597 12.6162 10.7368 12.9944 10.8865 13.346C11.0361 13.6975 11.2552 14.0153 11.5306 14.2801L15.996 18.6668Z" fill="#EF4444"> 
    </path> 
   </svg> Picks for you </h3> 
  <div class="grid md:grid-cols-2 gap-x-10 gap-y-3 md:gap-y-5 divide-y divide-gray-300 md:divide-y-0"> 
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
     Is Silver set to outperform Gold by 2024? <span class="self-center text-xs text-slate-500">1 hour ago</span> 
   </div> 
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
     Here are Bitcoin's new levels to watch as bulls prepare to break resistance <span class="self-center text-xs text-slate-500">2 hours ago</span> 
   </div> 
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
     Bitcoin pool mines seven blocks in a row, raises security concerns <span class="self-center text-xs text-slate-500">2 hours ago</span> 
   </div> 
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
     U.S. banking giants experiment tokenization with this <a rel="dofollow" title="cryptocurrency" href="https://thebittimes.com/tag/cryptocurrency.html">cryptocurrency</a> <span class="self-center text-xs text-slate-500">20 hours ago</span> 
   </div> 
  </div> 
 </div> 
 <div class="mb-4 bg-slate-50 rounded-md layout-adjustment"> 
  <div id="finbold.com_middle" style="min-width: 300px; min-height: 250px;"> 
  </div> 
 </div> 
 <figure class="wp-block-image size-large">
  <img decoding="async" width="1024" height="98" src="https://cdn.thebittimes.com/images/2024/05/18/93b5a85853b219fd706b92ef879a89f3.webp" alt class="wp-image-176707" srcset="https://cdn.thebittimes.com/images/2024/05/18/93b5a85853b219fd706b92ef879a89f3.webp 1024w, https://cdn.thebittimes.com/images/2024/05/18/93b5a85853b219fd706b92ef879a89f3.webp 300w, https://cdn.thebittimes.com/images/2024/05/18/93b5a85853b219fd706b92ef879a89f3.webp 768w, https://cdn.thebittimes.com/images/2024/05/18/93b5a85853b219fd706b92ef879a89f3.webp 1536w, https://cdn.thebittimes.com/images/2024/05/18/93b5a85853b219fd706b92ef879a89f3.webp 1676w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   <p dir="ltr" style="line-height:1.38;margin-top:0pt;margin-bottom:0pt;" id="docs-internal-guid-af14b552-7fff-322d-9146-0f4fe5484874"><span style="font-size:11pt;font-family:Arial,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">ENA derivatives market data. Source: </span><span style="font-size:11pt;font-family:Arial,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:italic;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">CoinGlass</span><span style="font-size:11pt;font-family:Arial,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> / Finbold</span></p>
  </figcaption>
 </figure> 
 <h2 class="wp-block-heading" id="h-ethena-ena-short-squeeze-price-target">Ethena (ENA) short squeeze price target</h2> 
 <p class="paragraph">As of this writing, ENA trades at $0.78, up 10.26% in the last 24 hours. The 24-hour open interest increased by 12.5%, while the volume increased by 35.48% to $541.55 million traded. Interestingly, $283.67 million were made of opened short positions in this period, with a 50.54% dominance.</p> 
 <p class="paragraph">In the case of a short squeeze, the token could target two key price zones. First, a short-squeeze liquidity pool awaits from $0.83 to $0.89, with most liquidations at $0.84. The second key level lies at $1.08.</p> 
 <p class="paragraph">A run to these price targets could render Ethena investors 7.7% to 38% gains from its current exchange rate.</p> 
 <figure class="wp-block-image size-large">
  <img loading="lazy" decoding="async" width="1024" height="529" src="https://cdn.thebittimes.com/images/2024/05/18/8529810027da25cd822ace915a302cd4.webp" alt class="wp-image-176708" srcset="https://cdn.thebittimes.com/images/2024/05/18/8529810027da25cd822ace915a302cd4.webp 1024w, https://cdn.thebittimes.com/images/2024/05/18/8529810027da25cd822ace915a302cd4.webp 300w, https://cdn.thebittimes.com/images/2024/05/18/8529810027da25cd822ace915a302cd4.webp 768w, https://cdn.thebittimes.com/images/2024/05/18/8529810027da25cd822ace915a302cd4.webp 1536w, https://cdn.thebittimes.com/images/2024/05/18/8529810027da25cd822ace915a302cd4.webp 1830w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   ENA Liquidation Heatmap, 1 month. Source: <em>CoinGlass</em> / Finbold
  </figcaption>
 </figure> 
 <p class="paragraph">However, Ethena’s long-term fundamentals are yet to be unveiled as the project has raised meaningful concerns in the <a rel="dofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> community.</p> 
 <h2 class="wp-block-heading" id="h-what-is-ethena-ena">What is Ethena (ENA)?</h2> 
 <p class="paragraph">In summary, Ethena is a protocol built on Ethereum (ETH) that has a governance token, ENA. The protocol aims to be “the internet bond,” providing a synthetic dollar, USDe, and “internet native yield,” as described in its official communications.</p> 
 <p class="paragraph">Its popularity skyrocketed when Arthur Hayes personally supported the project, followed by massive support from key players. Some skeptics have compared it to Terra’s (LUNA) surge and value proposition, which later culminated in its crash in 2022.</p> 
 <p class="paragraph">Therefore, the current short-selling interest could be a bearish demonstration of Ethena’s fundamentals instead of short-term speculation. This could prevent a short <a rel="dofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a> from happening despite all the signals and technical indicators.</p> 
 <p class="paragraph">Nevertheless, it is impossible to know whether Ethena will be a huge success or a drastic failure. Investors engaging with ENA and USDe must understand the risks and make conscious decisions moving forward.</p> 
 <p class="paragraph"><strong><em>Disclaimer:</em></strong><em> The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.</em></p> 
</div> 
<p>Source: <a rel="dofollow" target="_blank" href="https://thebittimes.com/short-squeeze-alert-this-cryptocurrency-could-skyrocket-next-week-tbt88754.html">https://thebittimes.com/short-squeeze-alert-this-cryptocurrency-could-skyrocket-next-week-tbt88754.html</a></p>

Short squeeze alert: This cryptocurrency could skyrocket next week

Table of Contents

TheBitTimes

Other articles published on May 18, 2024

Bitcoin Traders Mark $90,000 as Next Parabolic Trend High With $159,128 as Cycle Top in 2025 for ...

NetBSD Updates Commit Rules to Exclude AI-Generated Code

Crypto Millionaires Buy THESE Three Coins!

We asked ChatGPT-4o what will be Solana price at the end of 2024; Here’s what it said

BlockDAG’s Huge Power Move: Dashboard & Domain Upgrade Boosts User Experience, Elevating Presale ...

BNB Set To Hit New ATH In June? Crypto Whales Are Loading Up On Rollblock and Solana For Altcoin ...

Join our free newsletter for daily crypto updates!