74 Interactions, 6 today
Enjin announced just over 24 hours ago that it had become the first NFT company to be accepted into the United Nations Global Compact. The blockchain platform will now investigate the use of non-fungible tokens to promote the UN’s sustainability and equality goals.
Through the development of its JumpNet blockchain, the blockchain firm has arguably already made significant strides in reducing the climate impact of NFTs. Enjin is also a signatory to the Crypto Climate Accord, with the goal of making the crypto-industry run entirely on renewable energy by 2025.
Enjin, without a doubt, is doing good for the environment, but how is its own situation right now? The altcoin’s on-chain data, on the other hand, revealed a few positives.
1. Price DAA Divergence
ENJ’s Price DAA Divergence has been in the bullish zone since the beginning of this month, as shown in the attached chart. In fact, this metric tracks the relationship between the price of the alt and the number of daily addresses interacting with it.
At press time, the cryptocurrency was trading at $1.10, a 10.10 percent drop over the previous week. At press time, the alt’s price drop, combined with an increase in the number of active addresses, appeared to be triggering a ‘buy’ signal.
However, ENJ’s recent price movements show that such divergences do not always allow the alt to range better in the market. Consider the periods 1 May – 11 May and 1 June – 11 June – It is clear from the charts that the altcoin was unable to seize higher trading targets, despite a bullish divergence.
As a result, market participants must wait for the bullish signal to intensify further before entering ENJ’s arena.
Enjin’s volume increased briefly in the second week of July, but then fell back in the days that followed. In fact, on 20 July, ENJ’s volume projected a value of 165.65 million, while it easily crossed the 2 billion mark a handful of times during the second week of April.
Even though higher volumes do not always correspond to higher prices, it should be noted that ENJ’s recent price increases have been primarily triggered by high volumes. As a result, in order for ENJ’s price to recover, this metric must change its course soon.
3. NVT Ratio
As shown in the chart, ENJ’s NVT (network-value-to-transaction) ratio has increased significantly in the last 24 hours. This increase indicated that the network value had begun to become overpriced, and ENJ’s trading volumes would need to increase in order to balance the structure. This signal, to some extent, also indicated that ENJ’s price may experience further corrections before finally rallying.
Based on the current state of the aforementioned metrics, it can be concluded that another rally on the charts for ENJ will take some time.