Journalist
Posted:
- ENS has a strong bullish outlook for the coming weeks.
- On-chain metrics indicated increased market activity and demand.
Ethereum name service [ENS] has reversed its long-term bearish trend, beating a cluster of resistance levels around the $20-$22 region, which has been challenging the bulls since early August.
The networking activity also told an encouraging story.
That said, the possibility of a price drop is there. However, it is expected that the Ethereum Name Service token may still trend higher.
It has extensive unlocks in the coming months this could negatively affect the comparison between supply and demand.
ENS statistics indicate positive market sentiment
The 90-day MVRV was positive after strong recent gains. This opened up the opportunity for profit taking and a price drop. However, the number of trades and speed were more bullish.
Their upward trajectory since late October has been a sign of increased market activity. Transaction count measures the unique transactions that occur on the network in a day.
An increase in this measure is a sign of greater market participation.
Velocity measures how often a token changes ownership. Higher prices, speed and number of transactions mean the token is traded more often and supports the idea of a healthy, active market.
The distribution of supply by balance of addresses showed that the 1,000-1,000,000 ENS balance addresses had lost part of their holdings as of October.
The former cohort has started to climb higher and is showing some accumulation.
Shrimp addresses with less than 10 ENS also piled up. More importantly, large whales with 1 million or more ENS saw their share of the pie increase, a sign that whales were also buying these tokens.
Will this whale activity increase the chances of a rally?
Source: ENS/USDT on TradingView
Read Ethereum Name Services’s [ENS] Price forecast 2024-25
The move above $22 meant ENS bulls had clear skies above them. Volatility due to Bitcoin [BTC] could push ENS below the $20 mark, but even in that scenario it is likely to recover quickly.
The 78.6% level at $15.7 has been zealously defended since early August. A recovery from this level meant that the $34.5 and extension levels further north were the next targets in the coming weeks.