ENS and 4 Altcoins Could Plunge Due to Profit Taking Surge: What You Need to Know
Ethereum Name Service (ENS) and four other altcoins are showing potential signs of a price correction as profit-taking activity increases. The Market Value to Realized Value (MVRV) ratio, a key indicator of overbought conditions, suggests that these cryptocurrencies might be ripe for a sell-off.
Why ENS is in the Spotlight
A recent whale deposit of 282,365 Ethereum Name Service (ENS) tokens, valued at a staggering $9.15 million, into Binance has ignited considerable discussion within the crypto community. This surge could be one reason why ENS' prices surged by 6.54% over the last week, with the number of active addresses on the platform increasing dramatically. While ENS price has finally broken free of a downtrend, soaring from $12.55 after plunging from a high of $35.60, questions remain about its sustainability.
ENS Price Analysis: Will the Rally Continue?
Over the weekend, intense buying pressure propelled ENS beyond the $23 resistance, with the price rising impressively by 67% in just four days. Ethereum Name Service (ENS) even surged 8% recently, hitting a two-week high amid general altcoin buzz. Some analysts view ENS as a top Ethereum beta play, suggesting strong potential. If the market can sustain the ENS price above the $26.50 resistance level, bulls will likely aim for the important resistance level of $30. A bullish rally could even see a breakout to $50. However, a bearish scenario is also plausible. Is Ethereum Name Service (ENS) Bound for Further Decline?
MVRV Ratio: A Warning Sign for Altcoins
The MVRV ratio is a crucial tool for assessing whether an asset is overvalued. The MVRV ratio indicates that five altcoins, including ENS, are currently overbought, indicating a potential sell-off driven by high unrealized profits. Despite these high MVRV values, it's important to remember that market conditions can shift rapidly. Ethereum Name Service (ENS) and these four altcoins show signs of a price plunge amidst a rise in profit-taking. It's crucial to closely monitor market activity and exercise caution.
The 4 Altcoins at Risk
While we've focused on ENS, remember that the MVRV ratio suggests four additional altcoins are vulnerable to a price correction due to profit-taking. Be sure to research these altcoins and understand their individual risk profiles before making any investment decisions.