The recovering market has caused many cryptocurrencies to experience an upward trend, something that has greatly elated investors. What should not be forgotten, however, is that most altcoins have been in a downtrend since May 2021, making recent rallies nothing more than a speck in their price action.

Enjin’s up!

The community management platform’s native token, ENJ, is up 25.21% in the past five days. This rise is certainly organic as the gradual rise observed by the Chaikin Money Flow (CMF) underlines the inflows observed during this rise.

However, while this is a good sign for short-term traders, the long-term image of the altcoin remains disappointing.

Enjin price action | Source: TradingView – AMBCrypto

While ENJ was successful in marking a new ATH in November last year, its peak was barely higher than its April 2021 ATH of $4.03. Anyway, in these eight months, ENJ is down more than 88%.

In addition, although the peak of price action was marked in November, the average balance in any investor’s account was highest in April 2021. Usually, a lower average balance is caused by an increase in the number of addresses or a price decrease. In the case of the $24,000 average in November, this was due to an increase in the number of ENJ holders. Right now, with the average balance dropping to just $2.5k, it’s due to the falling price.

The Average Balance of Enjin Investors | Source: Intotheblock – AMBCrypto

Surprisingly, despite the 89% drop in balance sheets, investors have not lost faith in the altcoin. None of ENJ’s 168k holders have exited the market despite the 88% drop in price.

In fact, the resilience of Enjin holders is evidenced by the fact that these investors held up despite the highest market-wide losses of $60 million on June 14. The losses were observed as a result of the trades executed by investors on that day, whose losses exceeded $65 million.

Enjin trades in loss | Source: Santiment – ​​​​AMBCrypto

So those who see this rally as an opportunity to jump in may want to exercise restraint as there are no clear signs of a consistent rally.

Even in the short term, the Squeeze Momentum Indicator appeared to mark a further drop in price. This is probably more appropriate and in line with the broader market trend (ref. Enjin price action image).

This post Enjin-s on – A 25% rally, investor balances and all

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