ENJ up 5% After Announcing First Collectible Drop of the Year

The cryptocurrency market has started the new year the same way it ended in 2021. The prices of some of the leading cryptocurrencies are still in the red zone, while some altcoins are performing excellently.

Enjin Releases First Collectible of the Year

The Enjin team announced the launch of its first collectible drop of the year over the weekend. The team gave away free NFTs to its followers after posting the link and QR code to the NFT. The Enjin team added that it would be rewarding ten lucky winners who collected all three holiday drops with 22 ENJ tokens.

New year, new NFT! ✨

Celebrate 2022 with us and ENJoy our first collectible drop of the year!

Scan the QR or click to claim ➡️ https://t.co/7NL9gMnBuz

We'll be rewarding 10 lucky winners who collected all 3 holiday drops with 22 $ENJ. pic.twitter.com/RJwTS5gBBV

— Enjin | We're Hiring! (@enjin) January 2, 2022

 

Enjin is an Ethereum-based cryptocurrency used to directly back the value of some blockchain assets. The team wants the coin to be the gold standard for digital assets. Enjin is credited with creating the open-source ERC-1155 token standard. This token standard allows game editors to convert a wide range of assets like digital art, real estate and currency into tokens that can be used in blockchain applications.

Some of the use cases for Enjin’s ERC-1155 tokens include certification of ownership and several others.

ENJ Rallies Following the NFT Drop

The price of ENJ, Enjin’s native token, has been rallying since the team announced the NFT drop a few hours ago. Over the past 24, the value of ENJ has increased by more than 5%, outperforming numerous coins in the market. At press time, ENJ is trading at $2.86 per token.

The technical indicators show that the ENJ token is performing well but could struggle to maintain its current momentum. ENJ is still trading below the 50-day moving average of $3.01. Failure to break past the 50-day EMA could see ENJ’s price drop lower over the coming hours.

The MACD line currently stays around the neutral zone following days of negative performance. Meanwhile, the 14-day RSI of 48 shows that ENJ is just getting out of the oversold region.

If the rally can be sustained, then ENJ could break past the 50-day EMA and rally towards the first major resistance point at $3.2. However, ENJ would need the support of the broader market if it intends to reach the second major resistance level above $3.6.