- Enjin Coin is pushing to new record highs after bouncing off ascending trendline support.
- The RSI shows that buyers are firmly in control in spite of the overbought conditions.
- On-chain metrics seem to be lagging behind the upswing, hinting at a potential correction in the near-term.
Enjin Coin seems to have ignored the numerous calls for a local top. The token has sprung above ascending trendline support and is nurturing another uptrend to new record highs. At the time of writing, ENJ is doddering at $2.12 after accruing over 18% in gains on the day.
Enjin Coin rally is unstoppable
The Relative Strength Index (RSI) on the 4-hour chart illustrates a stronger bullish front. The indicator signifies how strong an asset’s trend is and identifies oversold and overbought conditions. Meanwhile, the RSI is in the overbought region, but its positive gradient suggests that Enjin Coin is firmly in the bulls’ hands.
The uptrend to new record highs will remain in place if Enjin Coin holds the trendline. Note that the price is above all the applied moving averages, including the 200 Simple Moving Average, the 100 SMA, and the 50 SMA. The gap between the 50 SMA and the other moving averages clearly shows that buyers are in control.
ENJ/USD 4-hour chart
On-chain metrics struggle to catch up with the technical levels
Enjin Coin MVRV ratio has hit figure two, the highest over the last 30 days. In other words, all investors are at a profit and therefore likely to sell. The MVRV measures the profit or loss of the ENJ holders. The model tracks tokens “moved in the last 30 days, based on the price when each token last moved.”
Enjin Coin MVRV
Santiment’s network growth on-chain metric has recently dropped from the 30-day top of 2,052 newly created addresses per day. At the moment, only 968 addresses are on average joining the network, representing a 52.8% drop. The model illustrates user adoption over time, and traders can use it to gauge network adoption. A declining network growth shows that the network is losing traction and is a bearish signal.
Enjin Coin network growth
Enjin Coin whales are also on a selling spree, according to the holder distribution. The number of addresses containing 1 million and 10 million addresses dropped from a 30-day high of 80 to the current 69, representing a 13.8% decline.
Enjin Coin holder distribution
The decrease in the number of large volume holders confirms the MVRV suggestion that investors are likely to sell when they are in profit. As selling pressure rises, the anticipated local top will come into the picture and pave the way to a significant correction.
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