Smart Money is accumulating more Ethena (ENA) while OI falls: Potential bullish signal?

In the past 24 hours, Ethena (ENA) has recorded a fall of 7.75%, erasing nearly half of the 15% increase that this coin achieved in the previous 30 days. Notably, "Smart Money" – the savvy investors – have quietly increased the position, revealing a deeper story behind the recent developments of ENA.

This volatility occurs against the backdrop of liquidity rotation and the tense confrontation between spot market investors (spot) and derivatives. Analysis from Bitcoin Magazine shows that these cash flows have played a crucial role in shaping the movement trajectory of ENA.

Smart Money bets heavily on ENA

Smart Money, known for its ability to seize profitable opportunities when assets are undervalued, has made a bold move on ENA. In just the past 7 days, this group has poured 1.2 million USD into the market — a strong signal that ENA may be undervalued.

Source: NansenNot only Smart Money is interested, but data from Nansen shows that new wallets are also actively participating in the same time period. First-time investors have poured in 4.8 million USD worth of ENA, further reinforcing the hypothesis about the low valuation of this token.

These lively movements are contributing to the overall price increase prospects for ENA, promising a potential wave in the market.

Spot investors are betting heavily

According to data from CoinGlass, the net flow on the Spot exchange over the past 7 days has shown significant demand, with a total inflow of 46.45 million USD as investors shifted tokens from the exchange to personal wallets. This activity not only reduces selling pressure but also reflects a strong accumulation trend.

Source: CoinGlassAccumulation Distribution Indicator( further reinforces this view, showing that up to 1.39 billion ENA have been absorbed in the market. Combined with Smart Money, Spot investors, and new wallets, all indicate a strong belief that ENA remains a promising buying opportunity.

![])https://img-cdn.gateio.im/webp-social/moments-950a0fad779d627ca861afab88d4f20d.webp(Source: TradingView## Derivative investors have a counteracting effect.

However, derivative investors are the key factor causing ENA to record weak performance in the past day. The recent decline mainly stems from their closing of a large part of the position.

According to data from CoinGlass, the open contract )OI( fell by 7.54%, to 1.25 billion USD, equivalent to a cash outflow of 94 million USD from contracts. This sharp decline, along with a surge in derivative selling volume, confirms that short-term bearish pressure is prevailing.

![])https://img-cdn.gateio.im/webp-social/moments-40e0f1fdbb8bd540e762e69797d7f32a.webp(Source: CoinGlassThe picture is not entirely bleak. Analyzing the Liquidation Heatmap) reveals a more sophisticated structure: clusters of positions appear both above and below the current price, but the thicker bands are concentrated above, implying that a bullish breakout may sustain momentum longer.

Source: CoinGlassWhile the short-term pressure comes from profit-taking and derivative capital flows, Smart Money along with new wallets is quietly accumulating ENA — opening up favorable opportunities for the bulls if the upward momentum is maintained.

SN_Nour