- Enjin Coin price has risen in the past few days.
- This recovery could be a dead cat bounce because of the elevated risks.
Enjin Coin price rose slightly on Monday as cryptocurrencies staged a strong rally. ENJ, the platform’s native token, rose to a high of $0.40, which was higher than the weekend low of $0.3341. It joined other altcoins like Synthetix (SNX), Conflux (CFX), and LOOM that surged on Monday. So, will these gains hold?
Fed actions in focus
ENJ price drifted upwards as investors reacted to the ongoing conditions in the financial market. Silicon Valley Bank, Signature Bank, and Silvergate Capital, have all failed in the past seven days. The American government and the Federal Reserve announced a backstop for SVB and Signature Bank, meaning that all depositors will receive their funds.
These actions, to some extent, helped to save the crypto market. For example, as I wrote here, it helped Circle to ensure that the USD Coin peg remains intact. Also, several companies in the industry, including Coinbase, had some cash in the company.
The other main reason why ENJ price is rising is the impact of these actions on the Federal Reserve. Analysts now believe that the Fed will slow down on its tightening process. Analysts at Goldman Sachs said that they believe that the bank will either hike by 0.25% this month or not hike at all.
Read more: How to buy Enjin Coin.
The Fed has been blamed for playing a role in creating the current inflation environment that we are in. It has also been hammered for causing the collapse of these banks. Therefore, since the Fed has been wrong so many times, it will likely stop hiking interest rates.
A less aggressive Fed will be a good thing for Enjin and other cryptocurrencies like Bitcoin and Ethereum. Indeed, the Fed was the main reason why BTC and other cryptocurrencies plunged in 2022.
Enjin Coin price prediction
The price action of ENJ is known as a dead cat bounce. It happens when financial assets jump sharply during a sell-off. In most cases, these gains tend to last a short period, especially when the fear and greed index has moved to the extreme fear level.
Turning to the daily chart, we see that the Enjin crypto price has been in a bearish trend in the past few days. It has managed to cross the 50-day exponential moving average (EMA). The Relative Strength Index (RSI) and the MACD have continued to fall. Therefore, I suspect that ENJ crypto price will continue to fall in the coming days.
