Enjin (ENJ) has broken above the 50-day moving average after more than a few months. The break through above this major resistance level comes in a time when the whole crypto market is going through a rough patch. One of the crypto enthusiasts in the market attributes this to social media, while some other call it a pump-and-dump scheme.
ENJ coin, which comes from the Enjin ecosystem—a blockchain platform focused on gaming, digital collectibles (NFTs), and virtual goods—is currently trading above the 50-day moving average with a price of $0.029.
Enjin was created with the main motive of making it easy for developers to mint, manage, and integrate blockchain-based digital assets into games and apps. ENJN is an ERC-20 token on Ethereum and is also used as the reserve asset for the Enjin Coin ecosystem, which includes a suite of tools and services for creators and gamers.
From the gaming perspective, the coin is designed to enable in-game assets (like weapons, skins, and items) to be tokenized, and these could also be traded outside of any single game, giving players true ownership.
In terms of how the coin works with NFT integration, Enjin supports minting NFTs and linking them to real utility across games and platforms.
On the ecosystem tools front: Enjin provides software development kits (SDKs), wallets, and marketplaces tailored for blockchain gaming.
ENJ prices shot up by more than 90% despite nothing special happening on it and the crypto market being relatively bearish.
Did Enjin rally on the social media buzz?
A crypto enthusiast stated on CoinMarketCap that ENJ has dramatically outperformed a broader market, which has been consolidating, if not bottoming. As such, the enthusiast stated that the price spikes are being primarily driven by a high-volume technical breakout, which has been amplified by social media buzz.
In addition to this, the global equities are entering another new earnings cycle, and the enthusiasts stated that the trading activity across both traditional and crypto-linked platforms appears to be picking up. Volatility during earnings periods often creates short-term opportunities, and some platforms are beginning to structure events around this behavior.
According to the enthusiast, one emerging trend is the introduction of task-based participation, where users complete simple daily actions to unlock randomized rewards.
This kind of a rewarding approach adds an interactive layer to trading. Not only does it add an interactive layer, but it also shifts it from purely speculative execution to something more engagement-driven.
Is the price rally a pump and dump?
While one crypto enthusiast was trying to explain the reason behind the price rally. Another crypto enthusiast called this a pump and dump scheme. The second enthusiast, who calls this a pump-and-dump scheme, saw some of the irregularities in the daily and weekly charts and mentioned it was fishy.
On the price charts, ENJ has broken above the 50-day moving average, which is considered the short-term resistance level. This is a good sign, and it shows the strong presence of the bulls.
Enjin pushed past the 50-day moving average after breaking out from a falling wedge, which is typically a bullish pattern. When a falling wedge begins to form, buyers gradually keep absorbing the selling pressure as price compresses into lower highs and lower lows. This often sets up the stage for an upside breakout once the wedge is completed.
This kind of move often signals a bull trap, where early breakout traders get caught on the wrong side, allowing stronger hands to push price lower before any meaningful trend reversal can take place. But unlike those, this breakout from the wedge is legitimate, and prices have consistently stood above this level.
However, the major problem here is not about the prices holding above the upper trendline of the falling wedge; it is about how the prices will hold above the 50-day moving average going forward. When taking a look at the technical indicator, the relative strength index, it has gone into the overbought zone as it shows a value of 75.
In healthy market conditions, prices that go into the overbought zone won’t last for long. As such, there is a high chance that the prices of ENJ would not be able to hold above the 50-day moving average in the coming days.
