Nov 27, 2024

6thTrade

ENS Turns Bullish with Strong Market Activity
Ethereum Name Service (ENS) has successfully flipped its long-term bearish trend, breaking through the $20–$22 resistance zone that has constrained bulls since early August. On-chain metrics and market activity suggest a bullish outlook for ENS in the coming weeks, though the possibility of short-term pullbacks remains.

Despite this, ENS is positioned for further gains, driven by growing market participation and whale accumulation.

ENS On-Chain Metrics Reflect Positive Sentiment

1. Increased Market Activity

  • Transaction Count and Velocity:
    Both metrics have seen an upward trajectory since late October, signaling increased market participation.

    • Transaction Count: Measures daily unique transactions on the network. An increase indicates heightened activity.

    • Velocity: Tracks how frequently tokens are traded. Rising velocity alongside price increases points to a healthy and active market.

    • Soure: Sentiment

2. Supply Distribution Trends

  • Whale Accumulation:
    Addresses holding over 1 million ENS tokens have increased their holdings, suggesting that large investors are confident in ENS’s potential.

  • Retail Accumulation:
    Smaller holders (less than 10 ENS) are also adding to their portfolios, reflecting growing interest from retail investors.

These accumulation trends underscore positive market sentiment and growing demand for ENS tokens.

Technical Analysis: Key Levels to Watch

ENS has broken past the $22 resistance, clearing the way for potential upside. However, price volatility from Bitcoin (BTC) could temporarily push ENS below the $20 mark. Even in such a scenario, a recovery is likely.

Critical Levels:

  • Support at $15.7: The 78.6% Fibonacci retracement level has been a strong support since August, offering a base for bullish recoveries.

  • Resistance at $34.5: This is the next major target for ENS, with potential for further upside in the coming weeks if the bullish momentum holds.

What’s Driving ENS’s Rally Potential?

1. Whale Activity Boosting Confidence
Large investors accumulating ENS tokens suggest strong confidence in its future prospects. Whale activity often precedes significant price rallies, increasing the likelihood of sustained upward movement.

2. Market Sentiment and Participation
Rising transaction counts and velocity show that ENS is seeing increased trading activity, indicating robust demand and market health.

3. Potential for Recovery Post-Pullback
Even if ENS faces short-term dips below $20 due to broader market volatility, the strong support at $15.7 and the overall bullish setup suggest it could quickly resume its uptrend.

Conclusion: ENS Positioned for Growth

Ethereum Name Service is in a strong position to extend its recent gains, with $20 acting as a pivotal level for the next phase of its rally. While pullbacks remain possible, whale accumulation, increased market activity, and a healthy supply distribution support a bullish outlook.

Targets at $34.5 and higher extension levels make ENS a token to watch in the coming weeks.