The Ethereum Name Service (ENS) has experienced significant gains, with data indicating that the token is currently overvalued.
Over the past 24 hours, ENS has surged by 15.62% and is now priced 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 trading 69% lower than its all-time high of $85.69 in November 2021.
In response to the price rally, the total market capitalization of ENS has reached $840 million, positioning it as the 82nd largest cryptocurrency. The daily trading volume has also surged by 39%, currently standing at $227 million.
According to Santiment data, the total open interest in ENS has risen by 27% in the past day, climbing from $60.32 million to $76.45 million. This sudden increase in open interest often leads to higher price volatility as a result of increased liquidations.
Market intelligence indicates that the total funding rate for ENS has decreased from 0.009% to 0.006% over the past 24 hours. The data reveals that the rise in open interest is primarily driven by an increase in short positions, indicating traders who are anticipating a decline in ENS’ price.
Santiment’s Relative Strength Index (RSI) for ENS currently stands at 61, suggesting that the asset is slightly overvalued and could be influenced by significant market players. To maintain a bullish trend, ENS would need its RSI to drop below the 50 mark.
For further insights, consider the following three reasons why the cryptocurrency market experienced a decline on Tuesday.