Can Enjin Coin dissociating from Bitcoin put the alt on a track to ATH

Please fol­low and like us:
Pin Share

For the most part of the last week, despite a new year and new week knock­ing on the cryp­to sector’s door, the larg­er mar­ket has been more or less in a con­sol­i­da­tion phase. Over the past few days, Bit­coin has remained quite com­pla­cent around the $50,000 lev­el giv­ing way to alt­coins to rally. 

While Defi tokens like YFI, UNI, and AAVE saw some decent gains Meta­verse tokens like Decen­tra­land (MANA), Axie Infin­i­ty and The Sand­box were rather qui­et. How­ev­er, at the time of writ­ing, Enjin Coin (ENJ) looked towards a recov­ery not­ing high­er dai­ly gains than the larg­er mar­ket. So, why was ENJ ral­ly­ing, and could this aid Meta­verse tokens’ trajectory?

Enjin’s engine running strong?

Well, until the third quar­ter, most of the afore­men­tioned Meta­verse tokens strict­ly adhered to the broad­er mar­ket trend. But now, a cou­ple of oth­er fac­tors are respon­si­ble for the sud­den rise in price for Enjin as the larg­er mar­ket looks rel­a­tive­ly weak. Recent­ly, Enjin coin’s Efin­i­ty had won Polkadot’s sixth parachain auc­tion gar­ner­ing over 7.7 mil­lion DOT tokens con­tributed by over 20,000 com­mu­ni­ty mem­bers which have pushed the nar­ra­tive for ENJ pump­ing prices. 

In tan­dem with prices, social vol­umes for ENJ rose even though they were still low­er as com­pared to the Novem­ber high. Net­work growth how­ev­er has con­sid­er­ably fall­en after the price fall from $3.21 on 27 December. 

Source: San­base

Fur­ther, the deposit trans­ac­tions have been more inclined towards their respec­tive low sides of late as spikes in the met­ric usu­al­ly indi­cate a hike in short-term sell pres­sure. Nonethe­less, with around 76% HODLers mak­ing prof­it at the $2.89 lev­el as the alt­coin made over 11% gains in the last two days sell-pres­sure could be eased amid antic­i­pa­tion of an ATH. 

All-time high approaching?

The larg­er price trend for Enjin Coin still looked bull­ish with ENJ mak­ing high­er lows on the one-day chart, but there were still fac­tors that could con­tribute to sell-offs in the near term. First­ly, the net­work looked less vibrant with trans­ac­tion count and active address­es falling in the last week. The 7‑Day change in new address­es for ENJ was ‑28.64% while that for active address­es was ‑37.36% which meant that with the net­work look­ing less vibrant ENJ might need a push from the retail side to sus­tain the rally. 

Addi­tion­al­ly, look­ing at the own­er­ship sta­tis­tics for ENJ, retail investors formed the largest sec­tion which meant that retail FOMO could be cru­cial for the altcoin’s run in the near future. 

Source: IntoThe­Block

So, while Enjin coin’s cor­re­la­tion with BTC was com­ing down which could present a good oppor­tu­ni­ty for the alt to ral­ly as BTC con­sol­i­dat­ed, the low­ered activ­i­ty on the net­work could play spoilsport. 

Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *