ENJ price performed well in the last 3 days. This move comes after the ENJ bulls broke the downtrend line that has been holding them back since Nov. 25. The recent uptrend shows that ENJ is ahead of Metaverse “boss” like MANA or SAND.
ENJ Price Chart 4 hours | Source: Tradingview
Indicators predict the price to rise more
The ENJ price has dropped about 75% in less than 3 months and bottomed out around $1.20. The resurgence of buyers now suggests that the uptrend is likely to continue. Furthermore, on-chain indicators seem to support this outlook and predict a bullish future for Enjin Coin.
The increase in on-chain volume from 118 million to 330 million shows that whales are interested in ENJ at current prices. This development could also attract retail investors. FOMO helps maintain the uptrend.
In addition, the higher volume since March 13 and no signs of abating – is one of the factors in favor of this Metaverse token.
ENJ on-chain volume chart | Source: Santiment
Further reinforcing the positive move is the recent increase in the number of ENJ whale trades. These deals are worth $100,000 or more and are typically by high net worth investors. Tracking these transactions gives market participants some insight into the intentions of institutional investors. Essentially, large trades are often a representative metric for this group of investors.
The spike indicator can be considered bullish if it occurs at the bottom of a bear cycle and bearish if at the top of a bull run. Considering how ENJ has lost 75% of its value, the increase in the number of transactions worth $100,000 or more from 6 to 40 reflects an optimistic outlook for this token.
Number of ENJ Whale Transactions | Source: Santiment
On the contrary, market participants need to be cautious as a pullback may be imminent. Furthermore, Bitcoin’s volatile situation may prevent ENJ from achieving optimal performance.
On the other hand, perhaps the most interesting metric is the supply of ENJ held on exchanges. This indicator is used to identify potential selling pressure on an asset. In fact, the number of ENJ holdings has increased from 403 million to 417 million.
The net increase of 14 million in centralized exchange wallets shows that investors can sell in the event of a flash crash, increasing sell-side pressure and causing more losses. Therefore, market participants should be cautious when investing in ENJ.
Supply of ENJ on exchanges | Source: Santiment
Join Bitcoin Magazine Telegram to follow news and comment on this article: https://t.me/tapchibitcoinvn
According to AMBCrypto