Hello Traders!
Today, I would like to introduce to you a powerful blockchain platform that has its entire focus on transforming the online gaming industry as we know it!
This project is called Enjin Coin.
Firstly, let us take a look at the performance of Enjin Coin (ENJ) below from January 2019 until today;
Looking at the chart above, we can see that Enjin saw a pretty miraculous price pump during February and March of 2019 as the cryptocurrency surged from a low of around $0.03 to reach as high as $0.23 - over an 800% price increase. This was largely driven by initial rumors that Enjin was going into a partnership with Samsung during late-Feb 2019. It was later confirmed in early March 2019 which caused the market to climb further higher.
Unfortunately, things started to turn pretty sour from there onward as the cryptocurrency started to slide throughout the rest of the year. It eventually went on to close 2019 at around a price of $0.08.
During 2020, we can see that Enjin started off on a strong footing as it climbed into the $0.15 range, however, during the March market collapse it dropped as low as $0.05 - largely caused by uncertainty regarding the Coronavirus pandemic. This price drop was apparent throughout the entire cryptocurrency market and the overall economy as a whole as Bitcoin and global stock markets all plummetted together. ENJ has since recovered slightly as it trades near $0.1.
Enjin Coin has been on the block for over a decade but only moved to the blockchain in 2017. They have provided a platform in which users can easily transfer and trade in-game assets over the blockchain. However, in recent years, they have taken their concept so much further.
Their Enjin Platform recently went live on the Ethereum Mainnet bringing in a whole host of features that are ready to transfer the gaming industry. Firstly, they introduced an entirely new Ethereum standard that lets game developers create non-fungible individual and unique tokens (more on this in the article).
Furthermore, taking things to the next level, the team has actually created a network of games that are all interoperable in which they have dubbed it as the Enjin Gaming Multiverse.
This pretty much means that you can now take your in-game items from one of these games and send them over to an entirely different game within the Multiverse. For example, you are able to take that laser gun that you found on Space Misfits and transfer it to be used as a machine gun on the Age of Rust!
Pretty cool eh?
For the reasons stated above, and more discussed below, I believe that ENJIN has the potential to surge by a total of 315% from the current trading price ($0.096) to reach my 2020 price prediction of $0.40.
In this article, I’ll firstly cover a range of topics that I believe will influence ENJIN in reaching my $0.40 target during 2020 and then analyze ENJIN on the daily chart to highlight some areas of resistance on the way toward the target.
What Is Enjin Coin?
Enjin actually started out as a social media site for gamers that allowed users to come and create their own website to interact with other gamers. With over 10 years of experience in the gaming industry and over 20 million users, the team decided to venture out into the cryptocurrency space to create Enjin Coin.
Headquartered in Singapore, Enjin was founded by Maxim Blagov and Witek Radomski and they conducted their ICO for Enjin Coin in 2017 in which they raised around $23 million.
They created the concept for Enjin Coin to radically transform gaming by bringing real life economics to virtual gaming worlds.
The Enjin platform is pretty much the heart of the entire ecosystem. It was initially created to be a market place in which users could trade and distribute virtual goods with one another. However, the team over at Enjin has taken this concept much further!
They envisioned a scenario in which players of games could actually earn real-life value whilst earning in-game assets such as game currency and rare items. With this in mind, they set out to create a platform that would benefit both game developers and players in the same space.
They were successful in launching their platform life on the Ethereum mainnet in February 2020. The Enjin platform now provides a place in which developers can come and create a game that has a real life in-game economy run entirely off of Enjin coin. Developers will easily be able to integrate an economic model into their game without having to worry about creating the underlying infrastructure and can, instead, solely focus on producing their game.
The mainnet launch came with the Blockchain SDK (Software Development Kit) for Unity. This allows developers that code in Unity to be able to integrate a blockchain (Enjin’s blockchain) easily into their gaming environment in a simple plug and play model.
The mainnet launch also came with a Java SDK to make it easy for Java developers to integrate blockchain-based assets into their games. The SDK makes it easier for developers to communicate with the Ethereum blockchain via the Trusted Cloud through APIs.
To find out more about the history of Enjin and the motivation behind the project, take a look into this article. There is also a GREAT FAQ available for Enjin Coin which covers many questions that you may have in depth.
The team over at Enjin made all this possible through the use of Non-Fungible Tokens (NFTs).
Ethereum already had its own NFT which is known as the ERC-721 token standard. However, the ERC-721 token required a separate contract to be deployed for each type of token. This is not suitable for gaming developers that need to create thousands of different types of NFTs.
For this reason, the Enjin team set out to create their own token standard to give rise to an entirely new wave of gaming known as the Gaming Multiverse!
ERC-1155 Multi Token Standard Gives Birth To the Gaming Multiverse
The ERC-1155 multi-token standard was proposed in June 2018 and finalized in June 2019. It allows developers to mint an infinite number of tokens (fungible and NFTs) in one single deployed smart contract.
For a technical specification of this standard take a look at the Ethereum Improvement Proposal that it was issued under, here.
This standard also saves up to 90% on Gas fees when minting new tokens, saving developers money. It also has features that allow users to trade, destroy, combine, upgrade, loan, and rent their assets. Along with this, batch transfers and atomic swaps are also available on this standard.
This token standard has given rise to the Gaming Multiverse.
Did you ever play a game and wish you could transfer the avatar you created over to another game?
Well, with the Gaming Multiverse you can do this and take your in-game items to different worlds!
The Gaming Multiverse is a series of games that have items within them that are interoperable with one another. This means that the gaming items used in one game can easily be transferred to be used in another through the Gaming Multiverse.
With the help of the ERC-1155 token standard, the in-game items have true, verifiable, ownership and can be traded amongst different games connected in the Multiverse.
Developers can support in-game items from other Multiverse games and can attract the player base from the Multiverse. There are already over 40 games that are live and connected to the Multiverse and over 2,800 ready to go in the Test Net.
You can find a list of all the great games connected here.
In Q2 2020 we can expect Enjin to release the Blockchain SDK for Godot, another open-source gaming engine that developers use. Furthermore, they will release EnjinCraft, a Minecraft plugin, and Enjin Beam to enable the simple distribution of blockchain assets via QR codes.
Enjin Coin (ENJ) Price Analysis
LONG TERM - DAILY CHART
What Has Been Going On?
Taking a look at the daily chart above, we can clearly see the 800% price increase that caused ENJ to surge during Feb/March 2019. The cryptocurrency started off at a low of around $00.025 and surged as high as $0.226 where it met resistance at a bearish .5 Fibonacci Retracement level.
This bearish Fibonacci Retracement level is measured from the ATH price of $0.49 seen in Jan 2018, to the low price seen during 2019.
ENJ went on to drop from here and continued to fall during 2019 as it closed the year at around $0.08.
During Jan/Feb of 2020, we can see that ENJ started to surge again as it climbed into the $0.15 level. However, the March market wipeout caused it to drop back toward $0.048. It has since rebounded from here as it trades at a price of around $0.095.
Are We Bullish Or Bearish (as of April 2020)?
As of April 2020, we are currently neutral. The cryptocurrency would have to break above $0.015 to start to turn bullish. On the other hand, the coin would need to drop beneath $0.045 to turn bearish.
If the sellers do step in and push ENJ lower, we can expect support to be located at $0.08, $0.06, and $0.05.
Beneath this, additional support is located at $0.04, $0.03, and $0.0247.
Where Is The Resistance On The Way Up TO $0.40?
On the other hand, when the buyers manage to break the resistance at $0.1, we can expect immediate higher resistance at $0.118, $0.14, $0.15, and $0.164. This is followed by strong resistance at $0.178, provided by a bearish .382 Fib Retracement.
Above this, resistance lies at $0.192 (1.272 Fib Extension), $0.20 (1.414 Fib Extension), and $0.226 (bearish .5 Fib Retracement).
If the bulls can go on to clear the 2019 high at $0.25, higher resistance will be expected at $0.275 (bearish .618 Fib retracement) and $0.30 (longer termed 1.272 Fib Retracement).
If the bullish pressure continues to drive ENJ further above $0.30, additional resistance is located at $0.344 (bearish .786 Fib Retracement) and $0.38 (bearish .886 Fib Retracement). If the bulls can clear these levels of resistance they will be clear to make an attempt at my 2020 price target of $0.40.
Conclusion
The fact that ENJIN is focused on revolutionizing the gaming industry gives it the advantage of focusing on one sector - rather than trying to be an “all-in-one” solution for everything.
With the latest release of the Enjin Platform on the Ethereum main net and already launched and functioning games on the Multiverse, ENJIN is well on the way in providing what they set out to build.
Furthermore, with this looming Coronavirus pandemic having no end in sight, think about all of the gamers that are locked down in their homes with only one thing that they love to do - gaming!
Their platform will continue to increase as they attract more developers into their ecosystem to build games that gamers love to play on a daily basis.
Given all that, my long term prediction is bullish, and if we hit the target of 315% we can see the price $0.40.
