A Big Breakout Awaits Enjin (ENJ) Following Its Scaling Update This Week
Ethereum rival Enjin is facing the prospect of posting a massive breakout rally ahead, according to a classic technical indicator and a crucial network update.
The mid-cap blockchain project, active since 2009, provides services for building gaming communities and products for game developers. It offers a suite of tools based on a web interface that enables Ethereum digital assets in the form of ERC-1155 tokens. ENJ serves as the de-facto settlement token for the Enjin network, similar to how ether backs the Ethereum blockchain.
Jump on JumpNet
The cost to purchase one ENJ rose more than 1,500 percent as Enjin posed an alternative to Ethereum’s rising gas and trade transaction costs issues. Its massive upswing also came after a press release published in March revealed Enjin’s plans to launch two updates on its network to improve its scalability and interoperability.
At the same time, these updates proposed to remove Ethereum’s expensive gas fees altogether while increasing support for the booming non-fungible token (NFT) industry (NFTs are novel, non-replicable cryptographic tokens that exist on a blockchain).
The first of these upgrades, dubbed as JumpNet, will be released on Tuesday. It is “a private version of the Ethereum blockchain with a Proof of Authority (PoA) method of consensus, enabling instant, secure, and gasless on-chain transactions.” Enjin plans to add more nodes to the Jumpnet by partnering with “trusted companies.”
Enjin multi-chain interoperability proposal. Source: Enjin Official Website
The JumpNet upgrade would lead to a full-fledged Enjin network overhaul, the second update dubbed as “Efinity.” It will introduce a multi-chain interoperability network for NFTs.
Enjin Trade Outlook
ENJ was trading lower ahead of the JumpNet update, partially because of a prevailing corrective mood across the cryptocurrency market. Most of the alternative cryptocurrencies trade under the top token Bitcoin’s influence. The BTC/USD exchange rate was down 0.65 percent on Monday morning. Meanwhile, ENJ/USD slipped 2.80 percent in the previous 24 hours.
Nevertheless, the lower levels provided buying opportunities for traders who would want to utilize the JumpNet news for their upside positions. Looking closely, the Enjin token tested an upward sloping trendline as support that constitutes a bullish continuation triangle pattern, dubbed as Symmetrical Triangle.
Enjin trades inside a bullish continuation triangle. Source: ENJUSD on TradingView.com
In retrospect, Symmetrical Triangles that appear in an uptrend tend to send the prices upward by as much as the maximum structure height. The height between the Enjin triangle’s upper and lower trendlines is $1.38.
Therefore, a breakout move to the upside could send the ENJ/USD rate to at least $3.81. Its current bid is near $2.26.
Photo by Kurt Cotoaga on Unsplash.
OhNoCryptocurrency via https://www.ohnocrypto.com/ @Yashu Gola, @Khareem Sudlow