ENS, the native token of Ethereum Name Service, a decentralized naming system, has seen a sharp price surge, jumping 37% in the past 24 hours. This phenomenon makes it the strongest growing cryptocurrency in the top 100.
The altcoin hit a year-to-date high of $37.29 in Asian trading on Thursday morning before pulling back slightly. It is now trading at $34.17, accompanied by a significant increase in trading volume.
Ethereum Name Service Sees Surge in Transaction Activity
A significant increase in trading volume has followed the strong surge of ENS. It has reached an all-time high of $2.35 billion, soaring more than 300% in the past 24 hours.
When an asset’s trading volume increases along with its price, it signals strong investor interest. Increased volume confirms that the price move is supported by active participation, making the upward momentum more sustainable. Conversely, an increase in price without increased volume may suggest a weaker uptrend that is prone to reversal.
This means that genuine demand for the Token, rather than speculative trading activity, has been driving ENS's rally.
ENS Price and Trading Volume. Source: Santiment
Furthermore, the altcoin’s open interest has spiked to a multi-month high of $132 million, confirming the surge in trading activity. According to Santiment, the interest has increased by 7% over the past 24 hours and is now at its highest level since July.
Open interest measures the total number of unfilled or closed contracts (such as futures or options) that have not been settled. When it increases during a bull run, it shows that more traders are entering positions, suggesting strong market participation in the rally.
This signals that the trend will continue, as rising open interest reflects growing confidence in the price action.
ENS Open Interest. Source: Santiment
ENS Price Forecast: Buyers May Face Pressure Soon
As of now, ENS is trading above the support formed at $31.57. A successful test of support would push the Token price to recapture the yearly high of $37.29.
However, readings from the ENS Relative Strength Index (RSI) suggest that the market is overheated, and buyers may soon run out of steam. The indicator's current reading is 79.27.
The RSI measures overbought and oversold market conditions of an asset. It ranges from 0 to 100, with values above 70 indicating that the asset is overbought and may be due for a correction. Conversely, RSI values below 30 signal that the asset is oversold and may be ready for a recovery.
ENS Price Analysis. Source: TradingView
A potential correction would push the ENS Token price below the support at $31.57 and towards $28.27.
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