Enjin: A Blockchain-Based Gaming Ecosystem
Enjin is an online platform designed for building gaming communities, based on the Ethereum blockchain. The project aims to create an ecosystem for easily exchanging non-fungible tokens (NFTs). Enjin was developed as a comprehensive platform that enables anyone to join the blockchain world, regardless of their technical knowledge.
With the Enjin platform, users can easily manage, distribute, and trade virtual assets (NFTs). What sets Enjin apart is that each token minted on the platform is backed by ENJ, the platform’s native token. This backing grants in-game items real-world liquidity, facilitating blockchain-powered gaming and gamified real-world systems.
Enjin enables users to generate new income streams and expand their businesses: artists can monetize digital art, musicians can convert music into tokens, gamers can earn by playing, and more. Millions of users already benefit from Enjin’s products, including crypto-backed tools such as SDKs, wallets, game plugins, virtual item management apps, and a payment gateway.
The platform already supports numerous projects and has partnered with well-known multinational companies, including Microsoft, Samsung, BMW, Aave Protocol, and Atari. While the platform’s popularity is growing, its future success will depend on the actions of its competitors, as well as potential regulatory challenges in the cryptocurrency market.
Enjin Coin (ENJ) is an ERC20 token that powers the Enjin ecosystem. Due to the extensive infrastructure for ERC-20 tokens, Enjin can be stored in numerous wallets. Enjin tokens can be mined, but since Enjin operates on a Proof-of-Work consensus model, staking is not an option.
Though the beginning of 2023 was promising for ENJ, recent days have shown a shift, with Enjin Coin (ENJ) falling more than 15% since February 23, leaving the possibility of further declines for ENJ.
Will the Fed Keep Interest Rates Elevated?
Recent data from Wednesday revealed that the two-year Treasury yield reached a 2007 high following manufacturing data showing persistent inflation. Federal Reserve policymakers also maintained a hawkish stance. As a result, concerns arose that the US central bank might increase interest rates by 50 basis points in March, and analysts anticipate that the Fed will keep rates at restrictive levels for a prolonged period.
The Institute for Supply Management’s survey indicated that raw material prices rose last month, and the yield on 10-year notes surpassed 4% for the first time since November, reaching 4.006%. The two-year treasury yield often aligns with expectations of interest rate changes, and Scott Wren, senior global market strategist at Wells Fargo Investment, suggested that financial markets could face turbulence in the upcoming weeks.
“The 10-year Treasury is rising, which naturally creates headwinds for stocks and cryptocurrencies. A rise in ISM prices paid shows that manufacturing costs are increasing. This suggests the Federal Reserve may continue pushing its policy into more restrictive territory for a longer period,” stated Matt Stucky, Senior Portfolio Manager at Northwestern Mutual Wealth Management.
In addition to these concerns, Minneapolis Fed President Neel Kashkari stated that a 50 basis point rate hike in March is possible, and Atlanta Fed President Raphael Bostic indicated that the aggressive policy could extend into 2024. Data on US payrolls and consumer prices in the coming days will further guide investors ahead of the Fed’s March 21-22 meeting.
The cryptocurrency market remains closely tied to equities and is susceptible to broader market shifts. Numerous indicators suggest that Bitcoin has not yet hit its bottom. Consequently, the price potential for Enjin Coin (ENJ) might be limited in March 2023, and traders should consider Bitcoin’s performance when taking short positions.
An Analysis of Enjin (ENJ) from a Technical Perspective
Since February 21, 2023, Enjin Coin (ENJ) has dropped from $0.56 to $0.45, with the current price at $0.47. ENJ may struggle to maintain above the $0.45 level in the coming days, and a break below this level could signal a further decline toward $0.40.
Key Support and Resistance Levels for Enjin (ENJ)
From the October 2022 chart, we can observe important support and resistance levels that will guide traders in forecasting price movement. Enjin Coin (ENJ) has recently weakened, but if the price rebounds above the $0.56 resistance, the next target would be $0.60. The current support level is $0.45, and a break below this would trigger a “SELL” signal, with a possible drop toward $0.40. A further drop below $0.40, which represents an important psychological support level, may lead to a target as low as $0.35 or even lower.
Why Enjin (ENJ) Might Experience a Price Increase
The upside potential for Enjin (ENJ) is likely limited in March 2023; however, if the price rises above the $0.55 resistance level, the next target could be the $0.60 resistance. Traders should also note that Enjin (ENJ)’s price is influenced by Bitcoin, so if Bitcoin surges past the $25,000 resistance, ENJ may follow suit and reach higher price levels.
Factors Suggesting Further Decline for Enjin (ENJ)
Recent economic data from the US suggests that the Federal Reserve will likely continue tightening its policy, possibly raising interest rates by 50 basis points in the near future. Consequently, the expectation is that ENJ may face further price declines in the coming days.
The price has stabilized above the $0.45 support level, but breaking below it would suggest that ENJ could test the critical support level at $0.40. Additionally, Enjin’s price tends to correlate with Bitcoin, so a decline in Bitcoin’s price will likely drag ENJ down as well.
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Experts have expressed concerns that the Federal Reserve may increase interest rates by 50 basis points this month and maintain a restrictive stance for an extended period. Matt Stucky, Senior Portfolio Manager at Northwestern Mutual Wealth Management, noted that this could negatively affect stocks and cryptocurrency prices, meaning that Enjin Coin (ENJ) might struggle to hold its current levels in the short term.
Although the Fed’s actions are intended to control inflation and benefit the economy, investors worry that aggressive interest rate hikes could lead to a severe recession. Investor Jeffrey Gundlach commented that he wouldn’t be surprised to see Bitcoin fall below $20,000 in the coming weeks, which could pull Enjin Coin (ENJ) below $0.40 as well.
Ava dikan: Cryptocurrency is highly volatile and not suitable for everyone. Never invest money you cannot afford to lose. The information provided here is for educational purposes only and should not be interpreted as financial or investment advice.
