Enjin Coin [ENJ] Price Analysis & Prediction: 25 March

Enjin Coin is losing ground within the confines
of a descending parallel channel. If losses continue below the middle boundary,
Pandora’s box will be opened as ENJ dives toward $1.6. Network growth is a key factor in the performance
of cryptocurrencies. According to IntoTheBlock, an increasing network
growth means that the project’s mainstream adoption is growing, while the upswing catches
momentum. This network growth is measured by tracking
the number of new addresses joining the network daily. The “Daily Active Addresses” metric reveals
the Enjin Coin’s newly-created addresses topped out at 2,750 on March 15 but have reduced
to 1,120 at the time of writing, representing a 59.2% drop. A declining network growth interferes with
the daily inflow and outflow of tokens on the protocol and is a bearish signal. The IOMAP model by IntoTheBlock reveals massive
seller concentration zones ahead of Enjin Coin price at the time of writing.

The most intense resistance area runs from
$2.31 and $2.37. Here, around 2,700 addresses had previously
scooped up nearly 51,500 ENJ. Trading above this hurdle will be difficult
in the short-term. On the flip side, the lack of a formidable
support area implies that the least resistance path is downwards. The subtle buyer congestion between $1.86
and $1.92 must hold to avoid massive losses from coming into the picture. Enjin Coin is trading marginally above $2
at the time of writing. The descending parallel channel’s middle
boundary support will likely be broken. Adding to the overhead pressure is the 100
Simple Moving Average (SMA) on the 4-hour chart. Similarly, a painstaking endeavor would come
for bulls if the lower edge support is lost because the next formidable support area is
at $1.5, as illustrated by the 200 SMA.

Additionally, the Moving Average Convergence
Divergence (MACD) indicator is sloping further into the negative region, thereby adding credence
to the bearish picture. Looking at the other side of the picture. If the pivotal channel’s middle level holds
firmly as short-term support, bulls will begin to focus on gains toward $3. The uptrend will be validated by price action
beyond the 100 SMA and the upper boundary of the channel..

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