ENS holds a strongly optimistic outlook for the coming weeks.
On-chain indicators suggest an increase in market activity and demand.
The Ethereum Name Service (ENS) has reversed its long-term bearish trend, breaking through a series of resistance levels in the $20-22 range that have been challenging the bulls since early August.
Network activity also tells an encouraging story.
Nevertheless, the possibility of a price correction still exists. However, it is expected that the Ethereum Name Service token may continue to rise.
There will be a significant release in the coming months, which may weaken the supply-demand balance.
ENS indicators reflect positive market sentiment.
After a strong recent surge, the 90-day MVRV is positive. This presents the possibility for profit-taking activities and price declines. However, the transaction count and speed are more optimistic.
Since late October, the upward trend indicates an increase in market activity. The transaction count measures the number of independent transactions occurring on the network in a day.
The rise of this indicator indicates an increase in market participation.
Circulation velocity measures the frequency of token exchanges. An increase in price, circulation velocity, and transaction counts means tokens are traded more frequently, supporting the idea of a healthy and active market.
The supply distribution calculated by address balance shows that addresses with 1,000-1,000,000 ENS balances have started to reduce their holdings since October.
The former has started to rise and shows some accumulation.
The number of shrimp addresses holding less than 10 ENS is continuously increasing. More importantly, the share of whales holding 1 million or more ENS is also increasing, indicating that whales are also buying these tokens.
Will the activity of whales increase the possibility of a rebound?
Breaking above $22 means a bright outlook for ENS bulls. The volatility brought by Bitcoin (BTC) may pull ENS below $20, but even in that case, ENS may quickly recover.
Since early August, the 78.6% level ($15.7) has been firmly held. A rebound from this level means that the extension levels of $34.5 and above will become the next targets in the coming weeks.
