Ethereum Name Service (ENS) has been making waves in the market, with Vitalik himself mentioning it on several occasions, causing its price to surge. Despite struggling to maintain levels above $26, the price recently experienced a temporary dip below this crucial threshold.
Over the past 10 days, the price of ENS has seen a significant increase, with more than 90% of the supply now in profit. This surge indicates a potential market peak for ENS. For the latest financial and business news, visit COINTURK FINANCE.
Market peaks typically occur when the total supply in profit exceeds 95%, but for ENS, this threshold sits at 90%. Historical data suggests that corrections tend to happen when this threshold is breached. Currently, ENS stands at 92%, hinting at a possible correction on the horizon.
With the market showing high profitability, the chances of holding onto profits may decrease. The Global In/Out of the Money (GIOM) indicator reveals that nearly 5.56 million ENS, valued at $144 million, could potentially transition into loss positions.
As ENS is currently trading at $25.7, falling below the $26 support level for the third time this year, there is a possibility of further decline. If the altcoin fails to surpass $26, it could drop to $23 and then to $20.9 if it fails to hold this support. Investor actions may trigger larger sell-offs, potentially driving the price down to $19.2.
Despite these bearish expectations, a bounce back from current support levels could see the price exceed $26 and attempt to solidify this level. A successful breakthrough could eliminate the bearish sentiment, paving the way for a new bullish trend.
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