Is it safe to buy ENJ coin after gaining 16% today?

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Is it safe to buy ENJ coin after gaining 16% today?

By Mircea Vasiu - min read

Enjin was launched in 2009 in Singapore and quickly became the largest gaming community creation platform. Its popularity led to the birth of ENJ, a cryptocurrency and smart contract meant to create trust and security in the community with minimal transaction fees. 

Enjin lets users create NFTs without coding. Moreover, users can get paid when other users trade digital assets via the Enjin marketplace. 

ENJ has a market capitalization of over $450 million and a circulating supply of 1 billion. The start of 2023 saw the ENJ coin gaining close to 100% against the US dollar, with about 16% today only. 

So is it safe to buy ENJ here? 

ENJUSD chart by TradingView

Did the crypto winter end in 2022?

The cryptocurrency market suffered from a string of bad news in 2022. First, it was Bitcoin that led the way lower, as the leading cryptocurrency plunged from over $60k to below $20k. 

Bitcoin lovers have argued for quick cryptocurrency adoption by institutional investors for many years. Finally, the adoption came, but with it, Bitcoin became correlated with the regular markets. 

In other words, Bitcoin was hit hard in 2022 by a strong US dollar. Also, it mainly moved on fundamental news affecting the overall market, such as the US inflation or changes in the Federal Reserve policy. 

As such, speculators in the crypto industry quickly turned their attention to other coins. But Bitcoin’s importance does matter for the overall industry. 

Therefore, when Bitcoin jumped over $21k at the start of 2022, it triggered a similar move on most of the crypto market. 

ENJ is one that followed suit. It gained almost 100% in 2023 after forming a falling wedge pattern at the end of last year. 

So is it fair to assume that the crypto winter of 2022 is over? 

At this point, ENJ tests resistance at an area that provided support in the past. If Bitcoin’s rally is not over, then one should not be surprised to see ENJ pushing above resistance.