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Ethereum Name Service (ENS) price has painted a red candlestick on the daily chart while attempting to close above $26.
The profits the investors accumulate seem to be saturating the market, creating unfavorable conditions.
Ethereum Name Service Reception Weakens
Over the past ten days, the ENS price registered a massive rally, which resulted in the total supply in profit crossing 90%. This marked a market top for ENS. A market top is the highest point in a market cycle before a significant downturn begins. It represents the peak of asset prices before they start to decline.
Generally, this market top is formed when the total supply of profit of an asset crosses 95%. However, in the case of this altcoin, this threshold has been observed at 90%. Historically, every instance of this threshold being breached has been followed by correction.
The same could occur this time around as about 92% of all ENS is profitable currently.
As a consequence of this saturation, the possibility of profits that lay with the investors is about to be lost as well. According to the Global In/Out of the Money (GIOM) indicator, close to 5.56 million ENS worth $144 million will remain at a loss.
This supply bought between $24.9 and $28.8 could have become profitable; however, the market’s top decline led to investors losing this shot.
Read More: Ethereum Name Service (ENS): Everything You Need To Know
ENS Price Prediction: Decline Seems Likely
ENS’s price at $24.8 fell below the support at $26.0 after failing to secure support for the third time this year. Given the last attempt failed, the altcoin slipped to $19.2; it would not be surprising to see the same this time.
The chances of falling to $23 and losing this support to $20.9 are high. Should the investors move to secure their profits, they could begin selling. This would lead to further decline, sending the altcoin to $19.2 again.
Read More: Ethereum Name Service (ENS) Price Prediction 2024/2025/2030
However, a bounce back from either of the support levels could try to breach and secure $26.0 as support. If this is successful, the bearish thesis would be invalidated, giving room to profits.