With the promise of providing users with an easy way to manage their NFT and cryptocurrency wallets, Enjin claims to build an ecosystem of products aimed at helping humanity create advanced virtual economies by leveraging the power of blockchain technology.
Founded in 2009, the company currently has a total of 12.4 million ENJ tokens tied up in assets. As of May 29, he was reported that the ENJ token was among the top 10 tokens bought among the top 2,000 ETH whales in the last 24 hours.
Let’s take a look at how the ENJ token has performed since early May, though.
This “Enjin” is defective
At an all-time high of $4.85 in November 2021, it hasn’t been a particularly good year for the Enjin token. Starting the month at an index price of $1.06, the token has since suffered a 40% decline in roughly 30 days. This drop has pegged the coin at $0.64 at the time of writing.
As expected, the market capitalization of the ENJ token also suffered an implosion. With a market cap of $934.80 million as of May 1, this token has since lost 38% of its value. At press time, that figure stood at $577.08 million.
Throughout the month, the ENJ token’s Relative Strength Index (RSI) and Money Flow Index (MFI) maintained deep positions in oversold regions. This indicates that the month has since seen significant bearish moves for the token. At press time, the RSI and MFI stood at 38 and 33 respectively.
It is also worth mentioning that in the past 24 hours, the price of the token has increased by 10% and the trading volume has also spiked by 10%. This could be attributed to the previously mentioned accumulation of whales.
Although the price may be sick
On-chain analysis revealed that the ENJ token recorded further declines, which speaks to its diseased nature. Further examination, however, revealed that investors appeared to have accumulated or held the token since mid-May.
The number of unique addresses transacting with the token has been on a downward trend since May 13 after hitting a high of 1,324 addresses. Since then, daily active addresses processing the coin have decreased by 86%.
As of press time, the supply index of the ENJ token on exchanges additionally stood at $426.05 million. It had been falling since May 10.
Typically, continuous spikes in this metric indicate increased selling pressure. However, it is the opposite for this token since May 10. Selling pressure has been steadily decreasing, suggesting that investors are holding their ENJ tokens.
To corroborate this position, the supply of ENJ tokens outside of exchanges peaked from May 10; suggesting increased accumulation.
Furthermore, the development activity of the token which stood at 6.12 at press time, and the development activity index of this token, has been on an upward trend since May 9.