Enjin Coin’s value plummeted by nearly 75% in less than three months, reaching a low of around $1.20. Buyers’ recovery suggests that the rise is likely to continue. Furthermore, on-chain data appears to support the forecast and point to an optimistic future for Enjin Coin. The increase in on-chain volume from 118 million to 330 million indicates that whales are interested in ENJ at present prices. This event may potentially attract FOMO-driven ordinary investors, fueling the rally.
Furthermore, the volume appears to be increasing since 13 March and shows no indications of decreasing. As a result, the Metaverse coin is benefiting from a tailwind. The recent increase in whale transactions for Enjin Coin lends validity to this strategy.
These trades are often worth $100,000 or more and are the work of high-net-worth individuals. Tracking these transfers allows market players to gain an understanding of what these institutional investors may be up to. This on-chain index essentially acts as a proxy for such investors. A spike in this indicator may be considered bullish if it comes at the bottom of a bear run and bearish if it occurs at the peak of a bull run. Given that ENJ has lost 75% of its value, the recent surge in transactions for $100,000 or more from 6 to 40 indicates that Enjin Coin has a bright future.
While things are looking positive for ENJ, market players should be cautious because a downturn is possible. Furthermore, the uncertainty surrounding Bitcoin may result in a less-than-ideal future for Enjin Coin. The supply of ENJ stored on exchanges is maybe the most intriguing indicator. This indicator may be used to forecast possible sell-side pressure on a certain asset. ENJ holdings have climbed from 403 million to 417 million for Enjin Coin.
This net 14 million increase in ENJ into centralised exchange wallets suggests that these investors may sell in the event of a flash crash, adding to sell-side pressure and incurring more losses. As a result, market players should proceed with care while investing in Enjin Coin.