- Enjin price dropped 20% beginning November 8 after a rejection from the $0.3277 resistance level.
- With bullish on-chain metrics steering the course, ENJ could correct 20%, clearing the equal highs with eyes set on $0.3400.
- The bullish thesis will be invalidated after the altcoin decisively slips and closes below the $0.2367 support floor.
Enjin coin (ENJ) price has been on a steep downtrend following a rejection from the $0.3277 resistance level, a key hurdle that capped the upside potential of the cryptocurrency. However, the tables seem to have turned, with on-chain metrics showing the bulls are actively taking over.
Enjin coin works out a turnaround
Enjin coin price is down almost 20% since November 8, when a downtrend ensued with the altcoin recording a lower high and a lower low. Based on technical indicators, the bulls are trying to correct the turnout for ENJ with the RSI deviating from the southbound move.
Increased buying pressure above current levels could see Enjin coin pull back above $0.2841, or higher, retracting past $0.3000. In a highly bullish case, the price could clear the equal highs at $0.3277 to collect the sell-side liquidity that resides above.
A break and close above $0.3277 would set the tone for Enjin coin price to extrapolate the climb past $0.3400 and possibly rise to the range high of $0.3661. Such a move would constitute a 35% climb above current levels.
ENJ/USDT 1-day chart
Enjin coin on-chain metrics to support bullish outlook
Several technical indicators support the bullish outlook for Enjin coin. For starters, network growth, representing the amount of new addresses that transferred ENJ tokens for the first time, has increased, corroborated by a steady rise in daily active addresses, which also showed the amount of unique addresses involved in ENJ transactions. With both metrics pointing to increased crowd interaction, user adoption is increasing for ENJ over time, which points to the project gaining traction, ultimately adding credence to the bullish thesis.
ENJ Santiment: Daily active addresses, network growth
Also, the active stable deposits are increasing along with the Tether (USDT) stablecoin market capitalization. These points to an increase in fresh money flowing in, interpreted as investor interest in buying the asset. It also adds credence to the bullish thesis, with the ensuing buying pressure likely to fuel a value increase for ENJ.
ENJ Santiment: Active stablecoin deposit, USDT market capitalization
Also, the supply held by top addresses as a percentage of total supply is increasing, pointing to demand, and overall market sentiment. It also points to possible whale accumulation or an increase in the ratio of tokens held on exchanges – which could signal potential sell-offs.
Nevertheless, owing to the fact that along with it, whale transaction count for addresses moving more than $100,000 and more than $1 million USD is also increasing, it points to whale accumulation. This is bullish for the Enjin coin, pointing to demand pressure.
ENJ Santiment: Supply held by top addresses as a percentage of total supply, whale transaction count
On the flipside, increased selling pressure could see Enjin coin price extend the fall past $0.2529 or lower, and slip past $0.2367. A break and close below this level would invalidate the bullish thesis, clearing the path for ENJ to stretch toward the range low at $0.2040. Such a move would constitute a 25% drop below current levels.