Enjin Coin has been experiencing a significant price surge following the ongoing bullish trend within the cryptocurrency market. This positive momentum continued amidst the Federal Reserve’s recent hawkish stance on interest rate hikes.
However, there are many problems ahead for the coin, including Silvergate’s recent news on growth. The bank’s stance has created problems in the crypto industry, but Binance could neutralize the trend.
Binance Pushing The Uptrend
Additionally, Binance’s introduction of a new concept called proof of reserves has further supported Enjin Coin’s price increase. Binance’s move comes in the wake of the 2022 collapse of FTX and aims to improve transparency levels.
As a result, Binance’s efforts have set an example for other exchanges to follow and have contributed to the overall market’s positive sentiment. In addition to Binance’s recent efforts to improve transparency levels through proof of reserves, the exchange has also been integrating various cryptocurrencies, focusing on the wider crypto community.
Binance has already published proof of reserves for Bitcoin, Ethereum, and 24 other assets, and today, they added several new tokens, including GRT, CHR, CRV, and the infamous DOGE, as well as Enjin Coin, which has contributed to its recent price surge.
With Binance’s continued efforts to accumulate various cryptocurrencies, the exchange has accumulated over $63 billion in crypto reserves, further strengthening its position within the market. As a result of this inclusion and continued support, Enjin Coin has seen a 5% increase in value over the past day.
Technical Analysis of Enjin Coin
From a technical analysis perspective, Enjin Coin’s price has bounced off the $0.415 support level, which aligns with the 100-day Exponential Moving Average (EMA) line. Currently, the cryptocurrency is trading at $0.448, a 7.4% increase.
Enjin Coin’s price is approaching the 50-day EMA line, and if the market turns positive, the token may recover its recent losses. In addition, the Relative Strength Index (RSI) also indicates an uptick, suggesting the possibility of a rise back to the green zone.
The MACD, also known as the Moving Average Convergence Divergence indicator, shows signs of a dying bullish sentiment on the histogram, even though a bullish crossover has not yet occurred. However, if a bull cycle scenario plays out, Enjin Coin’s price could test and breach the resistance level at $0.485, potentially allowing a rally toward 2023 highs of $0.547.
On the other hand, if Enjin Coin loses its critical support, it could find itself in trouble. If the coin closes below the daily candlestick, it could invalidate all the bullish signals and signify a strong reversal to a downtrend. The key support levels to test in this scenario include $0.391 and $0.356.