What is ENJIN?
It is a cryptocurrency (token ERC20) that is used for virtual goods created by Enjin. Enjin is one of the largest online gaming community platforms (+250,000 gaming communities, +18 million players).The goal for this company is to ensure that its cryptocurrency is the most widely used in the gaming industry. The Enjin ICO, held in late 2017, raised nearly $35 million. It should be recalled that the video game industry should generate about 235 billion dollars in 2022 according to Digi-Capital.
Enjin coin is not only a crypto-currency, it is also a smart-contract, which is based on the Raiden Network which is the Ethereum equivalent of the Lighnting Network. Thus, video game developers can easily create a currency unique to their community/games that will be supported by Enjin Coin as a reference currency. At the moment, there are 767,107,985 ENJ corners in circulation out of the planned 1 billion coins.
As can be seen on the graph, ENJ has a large resistance/support area around 2700 satoshis. It took 3 attempts (12/01/2018–26/01/2018–26/02/2018) before ENJ broke upward this resistance. This break was helped by Samsung’s official announcement to integrate ENJ into its crypto-currency wallet for the Galaxy S10 (March 8, 2019). This resulted in a 140% increase in a few days. ENJ then, experienced a drop on support via a descending wedge (red dotted line) for 34 days before breaking it up on April 13, 2019. Then the ENJ price went to the resistance of the 50% of Fibonacci’s retracement, before bumping into it.
What future for ENJ?
The figure drawn in red dotted line, representing a descending wedge, could be a bearish channel with the white oblique line as its upper resistance. As a result, ENJ could come up against it before bumping on its support/resistance at around 2700 satoshis. Also, it can be seen that the RSI and Wave Trend indicators, on a daily basis, have moved out of their oversold zone. Thus, it would indicate that we could arrive on a solid support.
Which strategy to adopt?
It would be more than interesting, given the fundamentals and technical analysis of investing at around 2600–2700 satoshis with a stop-loss at 2450 satoshis.
Important note : Binance will list ENJ/USDT the 18.04.2019 at 4:00 AM (UTC). This will most likely lead to an increase in liquidity. To be continued!
Warning, these are estimates and it is obviously necessary to monitor ENJIN and its evolution. This is a trading plan and not a prediction. Invest only what you can afford to lose.