Enjin Price Rises 2% – Will the Bulls Collect More Liquidity and Initiate a Strong Leg Up?

Highlights:

• Enjin Price has dropped 12% in a week as the bears control the market.
• Coinglass data shows a spike in open interest and a fall in volume, signaling a lack of investor confidence.
• The seller congestion at $0.14 demands that bulls collect more liquidity before a substantial leg up.

The Enjin price has surged 2% today, with the ENJ/USD trading at $0.1457 at press time. However, its 24-hour trading volume has plummeted 8% to $10.59 million, indicating a fall in market activity. ENJ is now down 12% in a week, 14% in a month, and 46% in a year. 

Enjin Coin, a project of Enjin, a company project that provides an ecosystem of interconnected, blockchain-based gaming products, was launched on the Ethereum mainnet in June 2018. Moreover, Enjin allows game developers to tokenize in-game items on the Ethereum blockchain. It uses Enjin Coin, an ERC-20 token, to back the digital assets issued using its platform.

Meanwhile, ENJ’s recent drop in trading activities suggests a bearish sentiment in the market. Coinglass data shows a slight spike in the Open Interest (OI), with ENJ surging by 2.17% to $10.52 million, while the volume has plummeted 24.45% to $8 million. This indicates a lack of confidence among traders and investors, painting the big picture bearish. 

Enjin Statistical Data

Based on CoinmarketCap data:

• ENJ price now – $0.1457
• Trading volume (24h) – $10.59 million
• Market cap – $257.15illion
• Total supply – 1.84 billion
• Circulating supply – 1.77 billion 
• ENJ ranking – #180

Will the Bulls Gain Momentum?

On October 21, the Enjin price surged; however, faced resistance at around the $0.1696 mark, forcing the token to retrace. A descending triangle pattern came in handy as ENJ stepped below the key moving averages, suggesting intense selling pressure. Meanwhile, the seller congestion at $0.14 demands that bulls collect more liquidity before a substantial leg up.

Diving to the technical outlook, the bears are in control of the market, with the bulls nowhere to be seen. This is evident as the ENJ price trades below the major bullish indicators, including the 50-day SMA at $0.1560 and the 200-day SMA at $0.1548. This indicates that the sellers have the upper hand in the Enjin market.

Notably, the Relative Strength Index (RSI) has plunged below the 50-mean level, stacking the odds in favor of the bears. Currently, the RSI sits at 45.64. If the selling pressure increases, the RSI could dwindle to the 30-oversold region, reinforcing the bearish outlook and vice versa.

The Moving Average Convergence Divergence (MACD), however, introduces a bullish outlook, signaling a bullish outlook. This calls for traders and investors to buy more ENJ as the blue MACD line has flipped above the orange signal line. Meanwhile, the buying pressure intensifies as the blue MACD line hurtles toward the positive area, above the (0.000) neutral area. 

Enjin Price Prediction

The Enjin price shows mixed reactions; however, the odds tend to lean towards the bears. The seller congestion at $0.14 demands the bulls to collect more liquidity before launching an attack at $0.15. In the meantime, increased selling pressure will cause ENJ to retest the $0.1406 support level.

On the upside, if the bulls capitalize on the MACD, which calls for traders to rally behind ENJ, the price will surge. In such a case, the bulls may launch an attack targetting the $0.1548 resistance level, coinciding with the 200-day SMA. A break above the critical zone will see the bulls reach $0.1560, invalidating the bearish sentiment.