ENS - Are folks accumulating?
Assets covered: ENS
Metrics used: Price, MVRV 7D, Supply on Exchanges, Social dominance, Supply Distribution
Like most altcoins, ENS have done a +100% gain (to recent top) since bottoming in mid-June as global markets saw a relief rally amidst an uncertain environment.
Nothing really has changed in terms of crypto's correlation with the S&P, it's still highly correlated, and more so towards the downside.
Indeed, there are times when the S&P rallied (in late May) but crypto continues to fall before catching up eventually. If anything, the S&P seems to be the one providing a hint as to where markets are going as money tends to enter safer assets first and works down the list.
Currently, the S&P appears to have hit the resistance zone and if it's not going to break up convincingly, it's highly unlikely that the cryptomarkets will enjoy the rally further for now.
A slight correction and another few attempts at that resistance would be encouraging though, that should open up room for another leg up for crypto.
Supply on Exchanges
For the past 3 months, sharp spikes in ENS' Supply on Exchanges have consistently signaled an impending selloff.
But since mid-July, we have not seen such sharp spikes, which is encouraging as it alleviates any sell pressure. Instead, we are seeing sharp drops in ENS' Supply on exchanges even as prices go up, possibly signaling that market participants might have begun accumulating ENS.
Supply on Exchanges previously suggested that some market participants are accumulating ENS. But who might they be?
Looking at the Supply distribution, we can observe that it's mostly the whales. Small/Mid-tier holders have decreased their positions.
ETH's MVRV 7D which measures the short-term profit/loss of holders is showing that we are in a somewhat neutral zone after topping out in the dangerzone.
ENS's social dominance remains relatively low even as the price continues to rally, which is a good sign so far as it suggests that it's not a hot topic yet.
Generally, a high spike in social dominance + Price rally (ones that melt faces), tend to be followed by a sharp decline in price as participants have entered a position and no one is coming after all the shilling is down.
Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.
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