- ENS metrics pointed towards an overvalued asset and eager vendor curiosity.
- The Fibonacci retracement ranges would possibly see costs rebound upward.
Ethereum Title Service [ENS] gained 191% from the first to the 14th of January. It rallied from $9.44 to $27.54, however has since fallen to $19.15 at press time. The latest dip additionally introduced costs beneath $20.5.
The Fibonacci retracement ranges highlighted the place ENS may doubtless discover assist subsequent. The HTF resistance stage at $20.5 was not flipped to assist, as costs fell beneath it on the nineteenth of January.
The 50% stage would possibly present a response
Supply: ENS/USDT on TradingView
The rally in January was used to plot a set of Fibonacci retracement ranges (yellow). It confirmed that the $18.48, $16.34, and $13.29 ranges have been necessary assist ranges to the south. An aggressive studying of the market construction confirmed it was bearish.
Nonetheless, the $11.6 is also argued to be the extra related larger low for the rally of the previous two months. The RSI was additionally above impartial 50, which meant the momentum was in favor of the patrons.
The OBV dropped notably over the previous week to focus on the promoting strain.
Revenue-taking exercise may drive costs decrease quickly
Supply: Santiment
The imply coin age noticed an uptrend in December, but it surely was interrupted in latest weeks, whereas costs quickly climbed larger. This meant that ENS holders have been doubtless promoting their tokens, resulting in the fragmented imply coin age.
The availability on exchanges metric has additionally quickly climbed larger. This signaled the probability of elevated promoting strain as holders moved the token to centralized exchanges.
Collectively, these metrics prompt that the rally ENS has been on may be drawing to an finish.
Learn Ethereum Title Service’s [ENS] Value Prediction 2024-25
The MVRV ratio additionally reached a excessive not seen in two years. This was adopted by a fast sell-off and the MVRV ratio additionally dived. The inference was that holders have been eager to appreciate their earnings.
Given the excessive worth of the MVRV at 30.6% regardless of the pullback, it was a robust trace that the token was nonetheless overvalued.
Disclaimer: The knowledge introduced doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion.