ENS price retraces 30% as predictions warn of an uphill battle

• ENS metrics pointed towards an overvalued asset and eager vendor curiosity.
• The Fibonacci retracement ranges would possibly see costs rebound upward.

Ethereum Identify Service [ENS] gained 191% from the first to the 14th of January. It rallied from $9.44 to $27.54, however has since fallen to $19.15 at press time. The latest dip additionally introduced costs beneath $20.5.

The Fibonacci retracement ranges highlighted the place ENS might doubtless discover assist subsequent. The HTF resistance degree at $20.5 was not flipped to assist, as costs fell beneath it on the nineteenth of January.

The 50% degree would possibly present a response

Supply: ENS/USDT on TradingView

The rally in January was used to plot a set of Fibonacci retracement ranges (yellow). It confirmed that the $18.48, $16.34, and $13.29 ranges had been essential assist ranges to the south. An aggressive studying of the market construction confirmed it was bearish.

Nonetheless, the $11.6 is also argued to be the extra related greater low for the rally of the previous two months. The RSI was additionally above impartial 50, which meant the momentum was in favor of the consumers.

The OBV dropped notably over the previous week to spotlight the promoting stress.

Revenue-taking exercise might drive costs decrease quickly

Supply: Santiment

The imply coin age noticed an uptrend in December, but it surely was interrupted in latest weeks, whereas costs quickly climbed greater. This meant that ENS holders had been doubtless promoting their tokens, resulting in the fragmented imply coin age.

The availability on exchanges metric has additionally quickly climbed greater. This signaled the probability of elevated promoting stress as holders moved the token to centralized exchanges.

Collectively, these metrics urged that the rally ENS has been on may be drawing to an finish.

Learn Ethereum Identify Service’s [ENS] Value Prediction 2024-25

The MVRV ratio additionally reached a excessive not seen in two years. This was adopted by a fast sell-off and the MVRV ratio additionally dived. The inference was that holders had been eager to understand their earnings.

Given the excessive worth of the MVRV at 30.6% regardless of the pullback, it was a robust trace that the token was nonetheless overvalued.

Disclaimer: The data offered doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the author’s opinion.