Enjin Coin (ENJ) managed to gain over 50% in the past week. What is the reason for the price spike, and should you consider buying some ENJ now?
Fundamental analysis: ENJ surges on strong fundamentals and improving on-chain data
Enjin has been performing great in the past three weeks, with numerous partnerships and exchange listings coming its way. The platform got listed on exchanges such as Huobi and OKEx, as well as added companies such as Beauty in the Streets to its long list of partners. All this has led to its steady but strong price increase.
📢 Enjin Coin $ENJ is now listed on @OKEx with USDT & #BTC trading pairs!
To celebrate, OKEx is giving away limited-run #NFTs backed by ENJ and a prize pool of 100,000 USDT. 🎁
Join for the chance to win an NFT backed by $500 in ENJ: https://t.co/ZScAM7u4oD pic.twitter.com/IECDqg2cYc
— Enjin (@enjin) March 18, 2021
However, Enjin’s price was not affected only by its recent partnerships. Its on-chain analysis shows strong bullish sentiment, which is mostly caused by the expansion of the NFT market.
ENJ posted week-over-week gains of 56.24%, outperforming both BTC‘s week-over-week loss of 1.96% and ETH‘s 1.36% gain. Enjin is currently the 46th-largest cryptocurrency by market cap, boasting a value of $2.14 billion.
At the time of writing, ENJ is trading for $2.62, which represents a price increase of 388.14% when compared to the previous month’s value.
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ENJ/USD technical analysis: ENJ pushes above the bull pennant and contests the $2.64 level
Taking a look at the daily chart, we can see ENJ consolidating after hitting a new high of $3.33 on Monday. However, the retracement was short-lived, as ENJ managed to find strong support in the 38.20% Fib retracement level of $2.22.
Enjin is now trading in the upper level of the range, bound by $2.22 to the downside and $2.64 to the upside.
ENJ/USD daily chart
Enjin is currently trading on strong, but slightly decreasing volume. Its daily chart RSI is steadily in the overbought territory since the beginning of March, with its current value sitting at 80.12.
ENJ/USD 1-hour chart
If we zoom in to the hourly time-frame, we can see how ENJ left the bull pennant, and pushed further up. However, the move got stopped at the $2.8 mark as selling intensified. Enjin is currently just under the 38.2% Fib retracement level of $2.64, and is trying to contest it.
A break above the $2.64 level would indicate a possible strong move towards the upside, but only if the volume increases. The current volume has close to no chance of breaking the recent high ENJ made. On the other hand, its downside is guarded by the 21-hour and 50-hour EMAs that sit right under the current price.