- The ENS price has started a recovery in a descending triangle and if the situation continues it can possibly register a breakout.
- The crypto asset is moving below the 20, 50, 100 and 200 day moving average.
- The ENS/BTC pair is at 0.0004424 which is at a loss of 0.33%.
Ethereum Name Service (ENS) is a distributed, open, and extensible naming system based on the Ethereum blockchain. ENS has a one of a kind value proposition due to being the first service that transfers the Domain Name Service to the decentralized Web3.
The ENS price is trading inside a descending triangle pattern over the daily price chart. The bears are pushing the price to the lower arm of the triangle possibly to make a breakdown. The price is moving already very low as compared to its all time high so the token needs to attract buyers to overcome this dominance and register a successful trend reversal along with breakout. If the price made a breakdown, analysts believe it may fall to a support level of $5. The bears made the market to have a blood bath.
The current price for one ENS token is trading at $8.50 which is at a loss of 0.92% in its market capitalization in the 24 hrs trading session. The token has a trading volume of 27 million which is at a loss of 13.50% over the intraday trading session and a market cap of 172 million. The volume market cap ratio is 0.1617.
Can ENS Register a Breakout
While observing the graph for a short term (4 hrs) we can see the bulls have started participating after a flattering downtrend movement. This can be an initiation of the trend reversal and if the bulls made a consistent effort they can definitely make a breakout.
The technical indicator MACD shows the buyers signal line i.e blue line is moving away from the seller signal line so the chances of a negative cross are a bit less, which superficially support a bullish movement. In support the relative strength index is moving upwards indicating the increase in buyings. The RSI value is above 45.
Conclusion
The ENS price is trading inside a descending triangle pattern over the daily price chart. The price is moving already very low as compared to its all time high so the token needs to attract buyers to prevent a breakdown. While observing the short-term graph we can observe an initiation of trend reversal. The market is very uncertain these days, so investors need to be alert.
Technical levels
Resistance levels: $9.3 and $10.3
Support levels: $7.9 and $7
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.