Why the ENS Token Price Rally May Be Short-Lived
ENSThe price of the native token of the decentralized naming system Ethereum Name Service has surged, surging 37% in the past 24 hours. This performance made it the biggest gainer among the top 100 cryptocurrencies.
In early Asian trade on Thursday, the altcoin hit a year-to-date high of $37.29 before easing back slightly. Currently trading at $34.17, trading volume has increased significantly.
Ethereum name service transaction activity surges
Transaction volume increased significantly With ENS double-digit surge. It has reached an all-time high of $2.35 billion, surging more than 300% in the past 24 hours.
When an asset’s trading volume increases along with its price, it indicates strong investor interest. The increase in volume confirms that the price action is supported by active participation, making the rally more sustainable. On the other hand, rising prices without increasing sales may indicate a weaker upward trend that may be easily reversed.
This means there is actual demand for the token, not just speculative trading activity, Promoted the ENS rebound.
Additionally, the altcoin’s open interest has surged to a multi-month high of $132 million, confirming increased trading activity. It has risen 7% in the past 24 hours and is now at its highest level since July, according to Santiment data.
Open Interest measures the total number of open positions (e.g. futures or options) have not been resolved or closed. When it climbs during a price increase, it indicates that more traders are taking positions, indicating high market participation in the increase.
This suggests that this trend will continue, as the increase in open interest reflects growing confidence in the price action.
ENS Price Prediction: Buyers May Run Out Soon
As of this writing, ENS is trading just above the support formed at $31.57. A successful retest of this support would push the coin price back to its year-to-date highs of $37.29.
However, the reading of the ENS relative strength index (relative strength index) indicates that the market is overheating and buyers may quickly become exhausted. As of press time, the indicator value was 79.27.
The RSI indicator measures overbought and oversold market conditions for an asset. It ranges from 0 to 100, with values above 70 indicating that the asset is overbought and may need a correction. Conversely, an RSI value below 30 indicates that the asset is oversold and may be about to rebound.
Potential corrections will drive ENS Token Price Is Below Support Level The price is $31.57 and close to $28.27.
Disclaimer
conform to trust project Guide, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our terms and Conditions, privacy policyand Disclaimer Updated.
