With the promise of providing users with a simple way to manage their NFTs and cryptocurrency portfolios, Enjin claims to be building a product ecosystem directed at assisting humanity to create advanced virtual economies by leveraging the power of blockchain technology.
Founded in 2009, the company currently has a total of 12.4 million worth of its ENJ tokens locked in assets. As of 29 May, it was reported that the ENJ token was among the top 10 purchased tokens among the 2,000 biggest ETH whales in the last 24 hours.
However, let’s take a look at the performance of the ENJ token since early May.
This “Enjin” is faulty
At an all-time high of $4.85 in November 2021, the year has not been particularly great for the Enjin token. Starting the month at an index price of $1.06, the token has since suffered a 40% decline in just about 30 days. This decline pegged the coin at $0.64 at the time of writing.
As expected, the market capitalization of the ENJ token also suffered an implosion. At a market capitalization of $934.80 million on 1 May, this token has since lost 38% of its value. At the time of press, this figure stood at $577.08 million.
Source: CoinMarketCap
All month long, the Relative Strength Index( RSI) and the Money Flow Index (MFI) of the ENJ token have maintained deep-routed positions in the oversold regions. This indicated that the month has since been marked with significant bearish movements for the token. At the time of press, the RSI and the MFI stood at 38 and 33 respectively.
Source: TradingView
It is also worth mentioning that in the last 24 hours, the price of the token rallied by 10% and the trading volume also witnessed a 10% spike. This might be attributed to the whale accumulation mentioned earlier.
Although price might be ailing
On-chain analysis revealed that the ENJ token recorded further declines, a testament to its ailing nature. A closer look however revealed that investors seem to have been accumulating or holding the token since the middle of May.
The number of unique addresses transacting the token took on a downward trend since 13 May after recording a high of 1,324 addresses. Since then, the daily active addresses transacting the coin declined by 86%.
Source: Santiment
At press time, the index for the supply of the ENJ token on exchanges further stood at $426.05 million. It had been on a decline since 10 May.
Typically, continuing spikes in this metric are indicative of increased selling pressure. However, the opposite has been the case for this token since 10 May. Selling pressure has been on a steady decline suggesting that investors have been holding their ENJ tokens.
Source: Santiment
To corroborate this position, the supply of the ENJ tokens outside of exchanges witnessed a spike from 10 May; suggestive of increased accumulation.
Source: Santiment
Also, pointing toward growth for the ENJ token during the month of May was the token’s developmental activity which stood at 6.12 at press time, and the index for development activity for this token has taken on an upward trend since 9 May.
Source: Santiment
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