Markets
Ethereum Name Service (ENS) Price Surge Hits Top 100 Entries
On June 25, the Ethereum Name Service (ENS) the price dropped to $22.95 amid market hesitation. Then, something intriguing happened: the price began to rise, reaching US$25.13 in the early hours of June 26th.
This 8.82% price increase made ENS the biggest gainer among cryptocurrencies in the top 100. Despite the increase, the behavior of market participants presents a more fascinating trend that could affect the value of ENS.
Investors ready to unload 812,000 tokens
As things stand, ENS investors don’t seem convinced that the token’s price will continue to rise. As such, many of them placed sell orders. The evidence of this decision is reflected in the depth of the Exchange-OnChain market.
Exchange-OnChain Market Depth provides real-time trading activity on exchanges. Divided into two, the supply side shows the number of buy orders, while the sell and sell region reveals the amount of tokens that could be placed selling pressure in price.
According to IntoTheBlock, investors appear prepared to sell a total of 812,870 tokens at an average price of $25.19. At this price, the value of the released tokens will be US$20.32 million.
Read more: Ethereum Name Service (ENS): everything you need to know
ENS Exchange-Onchain Market Depth. Source: IntoThBlock
However, buy orders fall short, with just 399,800 tokens ready to save the cryptocurrency from another downtrend. Considering the difference in ask and bid values, the ENS Price may not increase your current earnings.
Furthermore, the pattern displayed by the total value of holders puts ENS at risk of falling below $24. According to Santiment, the holder count has decreased from 66,300 on April 18 to 65,100 at the time of writing.
Situations like this imply that some holders are not liquidating a portion of their holdings. Instead, they are selling all of them. If this continues, it will signal a lack of confidence in the future potential of the Ethereum Name Service and a potential price decline.
As shown above, historical analysis going back to December 2023 supports the thesis. During the period, ENS Price it was $21.97. Less than a week after the number of hodlers dipped, the value dropped to $17.89.
ENS Price Prediction: Bulls are retreating
Regarding the next price movement, the 4-hour chart shows that it has managed to break out of the correction (marked in the red box) that occurred between June 23 and 24. Although the price continues to move higher, it faces resistance at $25.69.
Missing the barrier at this value could send ENS back to $23.52. If downward pressure persists, ENS could fall to $21.84, which maintains major support.
Given current conditions, the Average Directional Index (ADX) shows weakness for the uptrend. The ADX is a technical indicator used to determine the strength of a trend. Typically, readings of 25 or more imply strong directional movement.
However, as of this writing, the ADX reading is 21.13, facing down. If the directional strength continues to decline, the ENS price will have no option but to move lower.
See more information: Ethereum Name Service (ENS) Price Prediction 2024/2025/2030
However, this price prediction will be invalidated if demand for the token increases. One factor that can trigger demand is the Ethereum Name Service Migration announced last month because cheaper transaction costs make it easier for market participants to purchase a token. If this pattern plays out, ENS could attempt to retest $28.35.
Disclaimer
In line with the Confidence Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to 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 PolicyIt is Disclaimers have been updated.