Enigma Protocol token has been gaining momentum in the past 24 hours and the price had a surge of 60% at the moment of writing this article. Let’s find out a little bit about enigma and what could have been the reason for this price surge.
Enigma is a privacy layer for the current blockchains. It’s aiming to make the Smart Contracts Secret and increase the speed of the current Blockchains by taking the computation off the chain.
The Enigma token will be used as a fee that the blockchains have to pay in order to use Enigma, to pay the nodes for their work, or to own a node. To own a node, a certain amount of ENG is needed.
The circulating supply is around 77M and the total supply is 150M. Out of the 50% that is not in circulation, 25% is reserved by the devs and the other 25% is for the future strategic partnerships and investments. The current market cap is at around $37M.
ENG Short-Term Chart Analysis
- Support: 10k Sats
- Resistance: 13k, 24k, 28k Sats
- Current Price at the moment of writing this article on CoinGecko: $0.56
Let’s have a look at some charts, shall we?
Charts By Tradingview
Going through the 1-week chart we can see that ENG hit the bottom with a quick flash to 1000 Sats(Satoshi) and back to 6.4k Sats in December. After that, a pump came in, it dumped and ENG was moving in the same range for a few weeks until February when it went above the 9 EMA. It bounced between the 9 and 20 EMAs for a couple of weeks and then it went above the 20 EMA in March, currently being above the 50 EMA as well. I would expect it to be on the rise for over a week and then a correction should follow after it hits the 9th TD count and most certainly overbought on the weekly RSI.
Chart By Tradingview
You can better see the targets on the daily chart. I would wait to see how the daily closes, possibly a few more hours (to get it possibly cheaper) and set my first target at 24k Sats, the second target at around 27k Sats if I want to risk it.
As you can see, Enigma has been called the most undervalued “coin” and it will probably gain more attention since it made its place into the top 100 coins. Source: here
In conclusion, I feel like ENG is on the right path, moving upwards, however, I would wait for a while to see how it plays out with that big bearish hammer. In the short term, I feel like it will go further and should return decent profits, but it is definitely risky. I expect it to do very well in the long term.
Please, keep in mind that this is not financial advice, it is just me sharing my opinion. I am not a financial advisor. Always make sure to do your own due diligence before investing.