Is Mellow Finance’s $4.48M Bet on ENA a Genius Move or a Gamble? 🤔💰

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  • The wallet belonging to Mellow Finance withdrew 15.147 million ENA worth $4.48 million from Bybit. 🤑
  • Funding Rates turned positive across several major exchanges, while the aggregated order book liquidity delta also returned to positive territory. 📈

By choosing Ethena [ENA] as its first altcoin to invest in, Mellow Finance took a big bet at a time when the market was in the process of correcting. It’s like deciding to go for a swim just as the tide is turning. 🌊

With the wider toppings of the altcoins, the fund issued 15.147 million ENA, worth about $4.48 million, out of Bybit to the personal wallet. One can only hope they have a good reason for this, or they might just be the crypto equivalent of a lottery ticket. 🎟️

Buying the dip… or backing the future?

This first-time storage of the altcoin was a sign of high confidence in the future of Ethena Labs. Or perhaps it’s just a really expensive way to say, “I believe in you, ENA.” 🙏

The timing strategy by a correction implied that Mellow Finance perceived ENA had valuable fundamentals that were undervalued. It’s like finding a diamond in a dumpster, but you’re not sure if it’s real. 💎

The step can also be indicative of institutional confidence in Ethena in the crypto infrastructure of the future. This could support hope amid a generally poor altcoin performance in the market. Or it could just be a really expensive way to say, “I’m feeling lucky.” 🍀

ENA’s derivative markets signals

A dive into derivative markets showed that ENA’s Funding Rate History presented a rebound into the positive region on the bigger exchanges. It’s like the market decided to give ENA a second chance, but with a side of skepticism. 🤔

Funding Rates turned positive on major platforms, including Bitmex, Hyperliquid, and Bybit, signaling traders are again paying to hold longs. It’s like the market is saying, “Sure, you can stay, but you’re buying the next round.” 🍺

That’s a key shift after April’s prolonged negative Funding Rates streak. It’s like the market was on a long, depressing bender and is finally starting to sober up. 🥤

Additionally, the Aggregated Orderbook Liquidity Delta once again increased to positive figures, about $551.46K, a few days later after a drastic decrease on June 10. This inflow of around $0.29–$0.30 suggests renewed buy interest, even if cautious. It’s like the market is tiptoeing back into the room, checking to see if the coast is clear. 🕵️‍♂️

The rampant green delta bars indicated that there was a revival of interest in going by but on a guarded basis. This inflow arrested the price at around $0.30 and showed a possible short-term base. It’s like the market is saying, “Okay, let’s see if this holds.” 🤞

Key liquidation levels to watch

The Binance ENA/USDT Liquidation Heatmap reveals key risk zones. It’s like a treasure map, but instead of X marking the spot, it’s a big red warning sign. 🚧

There’s $262K in liquidation leverage below $0.28—a zone that could act as short-term support if bulls defend it. It’s like a line in the sand, and if it’s crossed, all bets are off. 🏃‍♂️

Meanwhile, stacked short liquidations above $0.30 present an opportunity for a squeeze if the price breaks through. It’s like a pressure cooker, and when it pops, it’s going to be spectacular. 🌞

In short, the closer ENA trades to these levels, the more explosive the next move could be. Whether that’s a breakout or a trap depends on how much conviction traders bring to the table. It’s like a high-stakes game of poker, and the ante just got a lot higher. 🃏

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2025-06-16 04:13