Just over 24 hours ago, Enjin announced that it was the first NFT company to be admitted to the United Nations Global Compact. The blockchain platform will now explore ways to use non-replaceable tokens to promote the UN’s sustainability and equity goals.
Undoubtedly, the blockchain company has already made remarkable strides in reducing the climate impact of NFTs through the development of its JumpNet blockchain. In addition, Enjin is also part of the Crypto Climate Accord and plans to run the crypto industry entirely on renewable energy by 2025. Enjin is undoubtedly doing good for the environment, but how good is his own state right now? Well, the altcoin’s on-chain data showed a few positives. Hoe werkt tradingview work?
1. Price DAA divergence
As can be seen from the attached chart, ENJ’s price-DAA divergence has been in the bullish zone since the beginning of this month. In fact, this metric tracks the relationship between the price of the alt and the number of daily addresses interacting with it.
As of going to press, the crypto was trading at $1.10 after falling 10.10% over the past week. The fall in the price of the alt, coupled with the rise in the number of active addresses, appeared to trigger a “buy” signal at the time of going to press.
However, ENJ’s recent price moves are proof that these kinds of differences have not always allowed the alt to outperform the market. Think of the phases between May 1 – May 11 and June 1 – June 11. Observing clearly shows that the altcoin was unable to grab higher trading targets despite a bullish divergence on the charts. Therefore, market participants should wait for the bullish signal to intensify further before entering ENJ’s arena.
Enjin’s volume peaked a few times in the second week of July, but eventually fell in the days that followed. On July 20, the volume of ENJ even estimated a value of 165.65 million, while in the second week of April it effortlessly crossed the 2 billion mark a few times.
While higher volumes do not always correspond to a price increase, it should be noted that ENJ’s recent increases have mainly been driven by high volumes. So, in order for the price of ENJ to bounce back, this metric would have to change course quickly. Komodo KMD has risen.
3. N/A Ratio
As can be seen from this chart, ENJ’s N/A (Network Value to Transaction) ratio has seen a significant increase in the past 24 hours. This increase was a sign that network value was starting to get too expensive and ENJ’s trading volumes would need to increase to balance the structure. This signal also underlined to some extent that ENJ’s price could subject itself to more corrections before finally rebounding.
Looking at the state of the above statistics, it can be concluded that it would take a little more time for ENJ to witness another rally on the charts.