The Ethereum Name Service Token Surges After Partnership with GoDaddy
The native token of the Ethereum Name Service platform, ENS, has experienced a significant price increase after collaborating with domain name registrar GoDaddy. ENS is currently the top gainer among the leading 100 cryptocurrencies, with a 19.3% surge in the past 24 hours, trading at $21.6. This rise in price has also pushed ENS’s market cap above $660 million, making it the 93rd-largest cryptocurrency.
Increase in Trading Volume and Open Interest
The daily trading volume of ENS has seen a substantial rally of 225%, reaching $200 million. Binance accounts for nearly 30% of the token’s trading volume. Additionally, the total open interest in ENS has increased by $16.9 million within 24 hours and currently stands at $60.05 million, as reported by Santiment.
Declining Funding Rates and Surge in Whale Transactions
However, ENS’s total funding rates have declined from 0.009% to 0.007%, indicating that some investors are betting against the price surge. Furthermore, there has been a significant increase in whale transactions involving at least $100,000 worth of ENS tokens, rising from one transaction per day to 11 within the past 24 hours. This surge in whale activity suggests potential high price volatility.
RSI Indicates Potential Overheating
The Relative Strength Index (RSI) for ENS has risen from 49 to 62 following the price surge. An RSI above 50 indicates over-heating and suggests a potential price cooldown in the future. To remain in the bullish zone, ENS’s RSI would need to stay below the 50 mark.
Hot Take: ENS Soars with GoDaddy Partnership
The collaboration between the Ethereum Name Service token and GoDaddy has propelled ENS to become the top gainer in the cryptocurrency market. With a significant price surge, increased trading volume, and open interest, ENS has attracted attention from both investors and traders. However, declining funding rates and a surge in whale transactions indicate potential market volatility. The rise in the Relative Strength Index suggests that ENS may be over-heated, potentially leading to a price cooldown. As ENS continues its bullish momentum, further developments and price movements will determine its future trajectory.
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