ENSO single-day settlement of $11 million, how far can it go after a 180% weekly increase?

January 26 News, Enso (ENSO) has caused intense volatility in the derivatives market, triggering approximately $11.67 million in forced liquidations over the past 24 hours, with over 70% of these being short positions swept out, indicating a typical short squeeze driving the price higher. Compared to the 7-day average, this liquidation scale has increased nearly fivefold and has also reached recent highs, highlighting that capital battles have entered a high-risk stage.

In terms of price, ENSO rose 38.3% within 24 hours, with a total increase of 180% over the past week. Meanwhile, on-chain and market data show a sharp increase in trading activity, with daily trading volume up about 170%, and open interest surging 70% within 24 hours. However, spot CVD remains sideways, indicating that this rally is mainly driven by leverage rather than sustained long-term buying.

Some traders have begun to issue warnings. Sardauna on X platform pointed out that ENSO’s short-term gains are too large, and the market is in an overextended state, with significant risks in chasing higher. From a technical perspective, the daily chart has broken through the previous downtrend line, with key levels at $0.844 and $1.178 being retaken, suggesting a bullish tilt. However, resistance above $2 remains strong, with historical highs at $1.992 and $2.785 not yet effectively broken.

In shorter timeframes, the 1-hour chart still maintains a bullish structure, as long as the price does not fall below $1.63, the bullish pattern remains intact. Important support zones are around $1.3, $1.06, and $0.72; if Bitcoin continues to weaken, these levels may be tested.

For investors who have already taken profits, gradually locking in gains is a more prudent strategy; traders who have not entered yet can wait for a pullback near $1 to reassess risk-reward. However, it should be noted that in an environment of high leverage and high volatility, ENSO may experience sharp rebounds even after short-term corrections, making risk management more critical than directional judgment.