The price of Enjin Coin is approaching an inflection point, with a 33 percent increase expected.
Because to the integration with Drops, Enjin’s ERC-1155 NFTs will gain a boost.
The bullish argument for ENJ will be invalidated if the $1.117 support level is broken.
Price of Enjin Coin is attempting several slashes through the range’s mid-point in order to generate a positive perspective. ENJ bulls’ forthcoming efforts are predicted to be fruitful, despite their recent failure.
Enjin has announced its integration with Drops, a platform that provides loans for NFT and DeFi assets. Enjin’s highly popular ERC-1155-based NFTs will gain even more value as a result of the collaboration.
Users will be able to borrow a variety of Ethereum-based assets and stablecoins without having to sell their NFTs thanks to this connection. The borrowed funds can be employed in a variety of goods, including yield farming via Drops Vaults and more, thanks to the exponential improvement in the DeFi landscape during the current bull run.
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The ENJ token will also be whitelisted for use as collateral within the Drops loans protocol, allowing users to borrow a variety of supported assets, including USDC, ETH, and WBTC, against their ENJ holdings.
While this is a significant enhancement for Enjin’s NFT users, the collaboration with Drops also includes ambitions to integrate Enjin’s Polkadot-based NFT blockchain, Efinity. Drops also intends to incorporate “Loans items” into the phenomenally successful Enjin Wallet.
The price of Enjin Coin tried three times in the last week to break through the 50% Fibonacci retracement level at $1.394, but each time failed. The current slowdown in the price of Bitcoin may be to blame for this shortcoming.
The next effort, however, is likely to break through the mid-point, allowing for a 10% move to the immediate resistance level at $1.543. Since June 5, this barrier has kept the market from moving higher, making it a significant obstacle.
As a result, a significant 6-hour candlestick close over $1.543 will signal greater buying pressure, potentially propelling ENJ to $1.737, a 33% gain.
6-hour chart of ENJ/USDT
On the other hand, if the latest attempt to cut through $1.394 fails, it will likely signal a lack of purchasing pressure. This trend could result in a 13% drop to the immediate support level of $1.117.
While a modest fall below this level is possible, a full-fledged breakdown followed by an inability to retake it will render the bullish argument incorrect.
If this happens, the price of Enjin Coin may return to the $1.065 support level./n
