Mid May Update: Technicals
Enjin is in a trendless ranging environment, a very important status that needs to be established before doing any TA (on any chart).
The Fib236 and MA200 are acting as current support for ENJ at these levels making the 1700 sats (most recent bottom) a breakdown point. Breakout point would be the Fib382 at 2881 sats, which if broken, would see ENJ surging all the way up to 3553 or even 5179 sats (Fib50 and Fib786 levels).
Moving averages are mixed up – MA50 and MA200 are aligned in ascending, bullish order while EMA20 has dipped below MA50, a signal of a near-term bearish trend.
On the 4 hour chart, ENJ is in a trendless environment and is currently sitting below EMA20 and right on the MA50. Volume has dried up a bit in the last five days and ENJ is at the confluence point of two Fib236 levels at 2043 sats. Breakdown level is, as mentioned above, 1700 sats, most recent bottom from May.
Next stop up for ENJ after this height is the local resistance level of 2440 sats, concurrently also a Fib50 height.
Bearish scenario: if ENJ fails to hold the 2400 sats level, it will probably retest the support at 1700 sats.
Breakout level is Fib50 and 2440 sats, which if smashed, could see ENJ reaching April highs of 3500-3900 sats.
One thing to bear in mind is the turbulent and erratic nature of bitcoin – a sudden thrust up or slide down is always on the cards which would invalidate this and all other analysis and predictions. In such cases, market is shaken up with most traders exiting altcoins and entering bitcoin positions or seeking shelter in stablecoins, especially in the initial phases of bitcoin pumps and dumps. So it is always a good idea to keep a close eye on bitcoin’s behaviour before opening a long or a short on any other coin in the market.
Should this happen, stop by again to check out our updated charts and thoughts.
Trading volume is relatively low – reported volume in the last 24hrs is $3.9m and “Real 10” (trading volume on the exchanges that provably prevent wash trading) volume is only slightly lower – $2.1m. This means that ENJ’s liquidity is only moderately inflated and its trading volume is overstated by 1.8x which is comparatively great ratio.
Moreover, ENJ has a somewhat strong buy support, according to coinmarketbook.cc. Buy support is measuring sum of buy orders at 10% distance from the highest bid price. This way we can eliminate fake buy walls and whale manipulation and see the real interest of the market in a certain coin. ENJ currently has a $835k of buy orders measured with this method, which sets ENJ buy support/market cap ratio at 0.77%, a wide-market above average value. Bitcoin and Ethereum have a 0.27% and 0.28% ratios, respectively. This novel metric indicates there are a lot of manipulations, inflated liquidity and fake orders on all crypto trading pairs, including ENJ pairs.
Mid May Update: Fundamentals
To assess fundamental health of a project, we used the FCAS metric. FCAS is a comparative metric whose score is derived from the interactivity between primary project lifecycle fundamentals: User Activity, Developer Behavior, and Market Maturity.
There are a few sub components which provide data to each fundamental:
User Activity is comprised of Project Utilization and Network Activity
Developer Behavior is comprised of Code Changes, Code Improvement and Community Involvement
Market Maturity is comprised of Liquidity and Market Risk. Market Maturity has less than 5% impact on a project’s overall FCAS.
FCAS ratings are on a 0-1000 point scale with a corresponding letter grade. Break points are based on standard deviations in the underlying component distributions.
900 – 1000 is marked as S for superb. 750 – 899 is marked as A for attractive. 650 – 749 is marked as B for basic. 500 – 649 is marked as C for caution. And finally, below 500 is marked as fragile. You can read more about it here.
Enjin has been ranked as the B category – basic with overall 658 points as of May 5th. By far the strongest metric that contributed to this great score is user activity that got 861 points, followed by market maturity with 635 and developer activity that had only 506 points.
Below are some of the most important news
around the project in the last 30 days.
- Along with providing exposure to 300 cryptocurrencies, Enjin and CoinSwitch have partnered up on a dedicated blockchain explorer, and payments solution on Unity.
- Binance and Bittrex added ENJ/USDT trading pair.
- Small dutch exchange LiteBit also listed ENJ in pairs with fiat currencies so this is another option for buying Enjin with credit card.
- The Enjin Wallet will fully support Binance Chain, including BNB assets and Binance DEX exchange functions.
Below is our long-term forecast where we cover general market movements and sentiment shifts before delving deeper into the specific predictions for ENJ.
Enjin Coin is a token on the Ethereum Blockchain. Think of it as a digital coin that you can use across many different websites and online games. It can even be converted into other kinds of digital property like game items or in-game gold.
Enjin Coin platform is made for the game industry. SDKs for multiple languages, wallets and payment platforms will be available and completely open-source. Online gamers can bring or trade their assets from game to game, community to community, growing their digital wallet with real value as they play.
Year in Review
During the last year Enjin team was active on the development front, releasing a powerful Ethereum blockchain explorer dubbed EnjinX as well as iOS Enjin wallet.
On the business side of the story, partnership with Unity was the biggest news of the 2018 year. 4.5 million Unity developers are now able to easily create & integrate ERC-1155 Ethereum blockchain assets into games for over 25 mass market platforms. Unity is used by roughly half of all game developers in the world, games built with Unity are played by 770 million gamers.
The Enjin Coin SDK will allow Unity game developers to create and manage crypto-backed virtual goods in their existing and upcoming games.
The biggest news of the short ENJ coin life happened in early 2019. Enjin was initially rumored to be cooperating with Samsung for games and services accessible through the Galaxy Store. Furthermore, Enjin can also be used to send and receive ERC-20 tokens and ERC-1155 crypto-game assets, and trade between characters.
In a YouTube video that emerged later, it was also revealed that the Samsung Galaxy S10 only provided support for Ethereum and not for Bitcoin or any other cryptocurrencies. Despite showing the Bitcoin logo, the Korean version of the device only showed Ethereum transaction information.
Following this confirmation, Enjin coin saw a massive spike in its price. Since the partnership was speculated a week ago, the coin’s trading price surged from $0.03 to $0.103. The coin jumped by a whopping 91.91 percent to reach $0.191, within four hours.
Enjin Roadmap 2019
Official roadmap has not been extended beyond 2018 as the team and the whole project is still buzzing from the Samsung S10 delirium. If we judge them by their 2018 achievements, Enjin holder should expect another highly active year as the Enjin team extends their work on a complex but interesting use case of blockchain technology.
General Market Movements and Sentiment Shift
The downfall of altcoins that were mainstream media darlings at the start of the year, ENJ among them, can be attributed, in part, to novice investors getting scared off once the bear market kicked in with a vengeance. Every resurgence of bitcoin in recent period, was met with the, for the most part, inability of altcoins to rally with it. Reason for that can be rookie investors learning from their mistakes, while smart money that was previously watching from the sidelines has begun to enter into bitcoin.
These entities weren’t about to buy BTC when it was trading at an all-time high, but they’ll take a look now, having missed the boat the first time around. None of them, it seems, are interested in altcoins however, despite the fact that many are trading at a 5x discount. Institutional investors may be cautious, but they’re not foolish.
Some altcoins will continue to have some speculative value for the foreseeable future. But just like the now infamous tulips, the hysteria will eventually subside. We are already witnessing the first phases of that slide and even though most of the bag holders react emotionally to articles that criticize their coins, I am just observing the developments on the market. You better start emotionally detaching yourself from your “great sounding” coin because if goes nowhere, ideas are worthless without execution and real users that see value in the project.
Our ENJ Price Prediction for 2019
ENJ, as the rest of the market, is tied at the hip of bitcoin’s price action. If bitcoin embarks on another bull run, ENJ can hope for one as well. Since that is very unlikely, don’t expect much to change for ENJ price-wise in this year. So 2019 will be a year of boring sideways action with minor bitcoin ignited jumps and slumps.
The main currency in cryptocurrency markets is Bitcoin and given this, altcoins tend to fuel Bitcoin runs and Bitcoin tends to do the same in return. Given this relationship, Bitcoin price movements (or lack thereof) tend to effect altcoin prices.
When Bitcoin goes up swiftly, it will likely:
- Suppress or depress altcoins as money flows into Bitcoin;
- Or, take altcoins along for the ride
In cases when Bitcoin plunges, it will likely:
- Depress altcoins as money flows into fiat;
- Or, cause altcoins to boom as money flows into them, but this is rarely the case.
When Bitcoin moves sideways, it will likely:
- Cause altcoins to mimic that as traders wait for a clear sign on the direction of the market;
- Or, cause altcoins to flourish as traders look for returns in altcoins and try to get favorable trades in terms of BTC pairs.
To summarize, Bitcoin is the focal point of the crypto market in many ways, and with BTC trading pairs on every exchange, the gravity of Bitcoin is hard to evade.
ENJ-BTC Price Correlation
The vast majority of trading that occurs in the crypto markets are between BTC and Altcoin trading pairs. Since most Altcoins do not pair with fiat currencies (and only a few are paired with stable coins like USTD), Bitcoin is the next best option. Therefore, when Bitcoin is stable, it forms as the ideal base currency for buying Altcoins (which is why Altcoins tend to do well when Bitcoin goes sideways).
Correlation is measured on a scale from -1 to 1. Values above 0 shows the degree to which altcoin is moving in the same direction as BTC prices (either up or down in tandem), and values below 0 shows the degree to which altcoin moves in the opposite direction of BTC prices (so when BTC goes down, altcoin goes up, or vice versa). Values around 0 shows that when BTC price moves, altcoins stays steady, or alternatively that when altcoin moves up or down that the BTC price is staying steady.
ENJ has had a relatively low price correlation coefficient of 0.54 on average or the most of its market life, with most of the time hovering around zero territory mostly due to the fact ENJ that has had couple of big runs induced by fundamentals (featured on Samsung S10 as one of the crypto wallets); as shown on the image below – source.
The majority of projects will fail — some startups are created just to gather funds and disappear, some would not handle the competition, but most are just ideas that look good on paper, but in reality, are useless for the market.
Vitalik Buterin, co-founder of Ethereum said:
“There are some good ideas, there are a lot of very bad ideas, and there are a lot of very, very bad ideas, and quite a few scams as well”
Enjin Future Outlook
As a result, over 95% of successful ICOs and cryptocurrency projects will fail and their investors will lose money. The other 5% of projects will become the new Apple, Google or Alibaba in the cryptoindustry. Will ENJ be among those 5%?
Hard to guesstimate this one.
Why will Enjin succeed?
One thing that sets Enjin apart is the fact that they are actually allowing developers and content creators to create virtual items on the blockchain which gives users actual ownership on the blockchain.
Why will Enjin fail?
While the potential is massive, we believe there are a lot of technical difficulties integrating ENJ tokens into different games. This project is a great concept if it works.
However, if Enjin cannot make it work, then ENJ tokens can only be used on the Enjin platform (websites, forums, etc.), which is going to dramatically reduce the use case of ENJ.
Will Enjin reach $1?
All of this summed up means one thing: ENJ might live through couple of orchestrated and, for a regular trader, completely unpredictable pumps but the majority of time will be murky sideways trading with small volume and no significant interest from the market.
Price will heavily depend on what BTC will do and since many analysts think BTC will not be making big moves in this year, it is hard to expect Enjin will do them either. The price will probably stagnate and record slow-moving depreciation or appreciation depending on the team activity, potential technological breakthrough or high-level partnership.
Market prediction for Enjin – ENJ Price 2019
With the market being completely unpredictable, forecasting the cryptocurrency price is really more of a gamble and luck rather than a data driven guesstimate.
Let’s throw a glance at the eminent publications and personalities, and their predictions regarding the ENJ price, which will give us another point of view to consider:
Walletinvestor is a popular website that does technical analysis-based price predictions of various cryptocurrencies. According to them, ENJ is expected to drop extremely to $0.081 per token in one year which would see it losing all of its Samsung S10 caused gains.
Trading beasts expects that Enjin will float around $0.17 within a year but also predicts it can roughly reach $1 by 2020.
Cryptoground predicts that Enjin might stay around $0.22 by the end of 2019. They even added their version of ENJ price prediction 2024, where they stated that ENJ might reach $0.55 by 2024.
Digitalcoinprice gave a slightly positive prediction saying that by 2019 end, ENJ might be two times more worth than now – $0.44 per coin.
ENJ Future: 2020, 2023, 2025
ENJ Price Prediction 2020
Enjin (ENJ) had its five minutes of fame with the Samsung S10 hype and this is their chance to seize the moment and ride the wave of hype to build the community and brand presence. Should Enjin do a good job at this, beating the current all time high from early 2018 should be doable – $0.48 here we come
ENJ Price Prediction 2023
If ENJ survives to see 2023, that would mean the project stood the test of time and gaming on blockchain is a real thing with user adoption growing, which would all lead to the token being worth at least 10-100x than its hitherto all time high. That would mean ENJ would cost $4-44 per coin.
ENJ Price Prediction 2025
Similarly to 2023, if ENJ survives to see 2025, that would mean the project stood the test of time and gaming on blockchain is a real thing with user adoption growing, which would all lead to the token being worth at least 100x+ than its hitherto all time high. That would mean ENJ would cost $44+ per coin.
Realistic ENJ Price Prediction
Predicting prices of novel, highly volatile and risky asset classes is a thankless task – best answer is no one knows. Educated guess is that realistic ENJ price for the foreseeable future is somewhere between its current price and its all time high.
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CaptainAltcoin’s writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner.
The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com