ENS Gained 37%: Trading Volume Increased by 296% to $2.35 Billion, Highest Level of the Year at $37.29!
The native token of Ethereum Name Service (ENS) has surged by 37% in the last 24 hours, taking it to the top of the top 100 cryptocurrencies. ENS experienced a rapid price increase, reaching a yearly high of $37.29 in the early hours of the Asian session on Thursday, before pulling back slightly. It is currently trading at $34.17. However, the remarkable increase in trading volume has also increased in parallel.
The 37% increase in ENS token was accompanied by a more than 300% increase in trading volume. Total trading volume reached an all-time high of $2.35 billion, indicating significant investor interest. The increase in volume suggests that the price action is supported by strong investor participation and that this rise may be more sustainable. On the other hand, price increases without an increase in volume usually indicate a weak uptrend.
This volume increase suggests that real demand for the ENS token is not only driven by speculative trading activity but also by solid investor interest. Additionally, ENS’s open interest has risen to $132 million, marking the highest level since July. According to Santiment, open interest has increased by 7% in the last 24 hours, confirming the increased trading activity.
Open interest measures contracts (such as futures or options) that have not yet been closed or settled. During a price rally, an increase in open interest indicates that more traders are supporting the rally by taking positions. This increases the likelihood that the trend will continue, as increasing open interest reflects stronger market participation and confidence in the price action.
Currently, ENS is trading slightly above the support level at $31.57. If the retest of this support level is successful, the token’s price could continue to rise to $37.29.
However, the ENS’s Relative Strength Index (RSI) value suggests that overbought conditions are forming in the market and buyers are starting to run out. The RSI has a value ranging from 0 to 100, with levels above 70 indicating overbought conditions and the possibility of a price correction. At the time of writing, the RSI is at 78.06.
This high RSI value means that a correction could be imminent. If such a correction occurs, the price of ENS token could drop below the $31.57 support and drop to $28.27.