Is Enjin Coin price poised for a 27% rally as Binance adds the token to its Proof of Reserves?

Enjin Coin price followed the broader market bullish cues as the altcoin treaded upwards, adding to yesterday's rise. This is despite the hawkish view from Federal Reserve Chair Jerome Powell, who suggested that higher interest rate hikes are on the cards.

Binance adds support for Enjin Coin

The world’s biggest cryptocurrency exchange introduced the concept of Proof of Reserves right after the collapse of FTX back in November 2022. Encouraging other exchanges to do the same, Binance stated this would improve transparency and trust within the community.

In line with the same, Binance began publishing the proof of reserves, starting with Bitcoin and Ethereum and went on to add other tokens as well. As of today, the exchange has published proof for 24 crypto assets, adding 11 more tokens on Tuesday. 

The 11 new cryptocurrencies added included MASK, WRX, GRT, CHR, CRV, 1INCH, CVP, HFT, SSV, as well as Dogecoin (DOGE) and Enjin Coin (ENJ). With these tokens added, Binance now shows over $63 billion in reserves with user funds collateralized at a 1:1 ratio.

This inclusion might also have added to ENJ’s price rise, pushing the token up by over 5% in the last 24 hours.

Enjin Coin price bounces back

Enjin Coin price bounced off the critical support level at $0.415, which coincides with the 100-day Exponential Moving Average (EMA) line. Rising by 7.41%, the cryptocurrency at the time of writing is trading at $0.448.

Inching closer to the 50-day EMA, ENJ might be able to recover the losses if the broader market cues turn positive. Some indications of the same can be noted on the price indicators as well. The Relative Strength Index (RSI) noted an uptick suggesting a rise back into the positive zone above 50.0. 

The Moving Average Convergence Divergence (MACD) indicator is also showing signs of receding bearishness, as observed on the histogram, even though a bullish crossover is yet to take place. 

ENJ/USD 1-day chart

If the bullish narrative plays out, the Enjin Coin price could rise to test and potentially breach the critical resistance at $0.485. This would allow it to rally toward the year-to-date highs of $0.547.

But if the critical support is lost, ENJ could end be in trouble. A daily candlestick close below this level would invalidate the bullish thesis, pushing the price to test the lows of $0.391 and $0.356.