This article will analyze the ENS coin according to www.coinmarketcap.com data. First, we will discuss the ENS coin and its projects and make technical and graphic analyses. The analysis we will do in the weekly period will help the investors to take risks and manage their portfolios.
What is ENS Coin?
ENS stands for Ethereum Name Service, and it is not a coin itself but rather a decentralized domain name system built on the Ethereum blockchain. It enables users to register and manage domain names that end with “.eth” in a decentralized manner, similar to how traditional domain names work on the internet.
What are the projects of ENS?
ENS is a project that provides a service for registering and managing domain names ending with “.eth” on the Ethereum network. It aims to enhance the user experience by enabling human-readable names instead of using long and complex Ethereum addresses. With ENS, users can associate their Ethereum addresses, decentralized websites, decentralized applications (dApps), and other services with domain names.
Factors Influencing ENS Price
Factors influencing the price of the ENS coin (as represented by the ENS domain name) include:
Market Demand: The overall demand for ENS domain names can impact prices. If there is high demand for desirable or popular domain names, their prices may increase due to competition among buyers.
Scarcity: ENS operates on the Ethereum blockchain, where each domain name is unique. Scarce or highly sought-after domain names can command higher prices due to limited supply.
Adoption and Usage: The wider adoption and usage of ENS domain names within the Ethereum ecosystem can positively influence their value. Increased usage indicates growing utility and can drive demand.
Ethereum Network Activity: As ENS operates on the Ethereum blockchain, factors affecting Ethereum’s network activity can indirectly impact the ENS domain name market. This includes network congestion, gas fees, scalability improvements, and the overall health of the Ethereum ecosystem.
Crypto Market Sentiment: The sentiment and trends within the broader cryptocurrency market can influence the price of ENS domain names. Positive market sentiment and increased interest in decentralized applications and blockchain technologies can lead to higher demand for ENS.
It’s important to note that while ENS domain names can be bought and sold, they do not have a native token or a separate coin associated with them. The value of ENS domain names is determined by market dynamics and the factors mentioned above.
ENS COİN TECHNICAL ANALYSIS
After seeing its historical high of $ 120.00 in November 2021, ENS dropped 94% by June 2022, down to $ 7.37. Although it went up to $ 20.50 with the purchases in the market in October 2023, it is currently trading at $ 10.59. According to www.coinmarketcap.com data, ENS, which has a size of $301,715,438, has had a volume of $13,542,919 in the last twenty-four hours.
ENS Chart Analysis
ENS coin, which fell by 94% from $ 120.00 to $ 7.37 in a few months, is currently trading at $ 10.59, although it rose above $ 20 in the last quarter of 2022. When we examine the weekly chart, it should be noted that if the ENS coin in the support zone breaks down the $ 10.48 support zone, the selling pressure will continue to increase and it may experience a rapid pullback to $ 7.37. As it stays above the horizontal support at $10.48, it could target the $15 level.
This article does not certain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their research when deciding. This article does not include investment advice or suggestions. Every investment and trading move involves risk, and readers should perform their analysis when determining.
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