ENS experiences a 15 surge entering the overbought territory
The Ethereum Name Service, also known as ENS, has experienced significant growth recently, with indicators suggesting that the token may be overvalued at its current price. Over the past 24 hours, ENS has surged by 15.62% and is currently trading at $26.7. This marks the second time this month that ENS has surpassed the $26 threshold, a level not seen since January 2022.
Despite this price increase, ENS is still down by 69% from its all-time high of $85.69 in November 2021. Following the recent rally, ENS’s total market capitalization has soared to $840 million, making it the 82nd-largest cryptocurrency. The daily trading volume of the asset has also seen a significant increase, now standing at $227 million, up by 39%.
Data provided by Santiment indicates that the total open interest in ENS has risen by 27% in the past day, climbing from $60.32 million to $76.45 million. A sudden surge in open interest typically results in higher price volatility due to increased liquidations. Santiment’s data further reveals that the total funding rate for ENS has decreased from 0.009% to 0.006% over the past 24 hours. This drop in funding rate is attributed to an increase in short positions, indicating that traders are betting on a decline in ENS’s price.
The Relative Strength Index (RSI) for ENS currently stands at 61, suggesting that the asset is slightly overbought and may be subject to manipulation by large investors. To maintain its bullish momentum, ENS’s RSI would need to drop below the 50 mark.
In summary, ENS has experienced significant growth recently, with indicators pointing to a potential overvaluation at its current price point. Traders and investors should closely monitor these metrics to make informed decisions in the volatile cryptocurrency market.
