Enjin-s on – A 25% rally, investor balances, etc.

The market rally has seen many cryptocurrencies trend upwards, which has greatly pleased investors. However, the takeaway is that most altcoins have been on a downtrend since May 2021, making recent rallies nothing more than a dot in their price action.

Enjin-s on!

The native token of the community management platform, ENJ, has increased by 25.21% in the last five days. This rise is certainly organic as the gradual slope seen by the Chaikin Money Flow (CMF) highlights the inflows that have been seen throughout this rise.

However, while this is a good sign for short-term traders, the long-term picture for the altcoin continues to be disappointing.

Enjin Course | Source: TradingView – AMBCrypto

Although the ENJ managed to score a new ATH in November last year, the spike was only slightly higher than its April 2021 ATH of $4.03. Anyway, in these eight months, ENJ has decreased by more than 88%.

Additionally, even though the price action peaked in November, the average balance in each investor’s account was highest in April 2021. Usually, a lower average balance is caused by either an increase in addresses , or by lowering the price. In the case of November’s $24,000 average, this was due to an increase in the number of ENJ holders. At present, the average balance has dropped to just $2.5,000, this is due to lower prices.

Enjin’s Average Investor Balance | Source: Intotheblock – AMBCrypto

Surprisingly, despite the 89% drop in the balance, investors have not lost faith in the altcoin. Not a single one of ENJ’s 168,000 holders left the market despite the 88% drop in price.

In fact, the resilience of Enjin holders is evidenced by the fact that despite the highest market-wide losses worth $60 million on June 14, these investors held their ground. The losses were observed due to the transactions made by the investors on that day, of which those in loss exceeded the mark of 65 million dollars.

Enjin transactions in loss | Source: Santiment – ​​AMBCrypto

Thus, those viewing this rally as an opportunity to step in might want to hold back as no clear signs of a consistent rally are visible.

Even in the short term, the Squeeze Momentum indicator seemed to point to further price declines. This is likely to be more suitable and in line with the general market trend (ref. Enjin price action image).

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