fxs_header_sponsor_anchor

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

  • Enjin Coin price saw a 7.41% increase in the last 24 hours following Fed chair Jerome Powell’s testimony.
  • Binance added 11 new assets to the Proof of Reserves systems, including the likes of Dogecoin and 1INCH.
  • ENJ managed to pull back from falling through its critical support, reclaiming the 50 and 100-day EMA support trading at $0.448.

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.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.