Is ENJ preparing for a big rally?

Enjin was a little over 24 hours ago notification that they were the first NFT company to be included in the United Nations Global Compact. The blockchain platform will now investigate the non-fungible use of the token to advance the United Nations’ goals of sustainability and equality.

Arguably, the blockchain company has made remarkable strides in reducing the climate impact of NFTs by developing the JumpNet blockchain. In addition, Enjin is also part of the Crypto Climate Pact and intends to run the crypto industry entirely on renewable energies by 2025.

Enjin undoubtedly improves the environment, but how good is it now? Well, altcoin on-chain data is showing some positive signs.

1. DAA price variance

Source: Santiment

As can be seen from the graph above, the ENJ Price DAA (Price DAA Divergence) has been in a bullish zone since the beginning of this month. In fact, this metric tracks the relationship between price and the number of daily active addresses.

At press time, the cryptocurrency is trading at $ 1.10 after seeing a 10.10% drop from last week. The drop in the price of altcoins, along with an increase in the number of active addresses, appears to trigger a “buy” signal at the time of going to press.

However, ENJ’s recent price moves are evidence that these types of divergences don’t always allow Altcoins to outperform the market. Looking at the periods May 1st – May 11th and June 1st – June 11th, it is clear that the altcoin was unable to hold higher levels despite the bullish divergence.

Therefore, traders need to wait for a stronger bullish signal before entering a long position.

2. Mass

Source: Santiment

Enjin’s trading volume spiked in the second week of July but eventually fell again in the days that followed. In fact, the trading volume of ENJ reached 165.65 million on July 20, while in the same period, in the second week of April, it exceeded the 2 billion mark several times.

While higher trading volume does not always translate into price spikes, it should be noted that ENJ’s recent rallies have been largely driven by high volumes. In order for the price of ENJ to rise again, the index must therefore change its direction soon.

3. NVT ratio

Source: Santiment

As you can see from this graph, ENJ’s Network Value to Transaction Frequency (NVT) has seen a significant increase over the past 24 hours. This increase is a sign that the network value is overvalued and ENJ’s trading volume needs to be increased to balance the structure. This signal also suggests, to some extent, that the ENJ needs further revision before a recovery.

Looking at the state of the above indicators, one can conclude that it will be some time before ENJ will see another rally on the chart.

SN_Nour

According to Ambcrypto

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