Is Enjin [ENJ] on the verge of a massive upward race? 

Just over 24 hours ago, Enjin announced that it has become the first NFT company to be accepted into the United Nations Global Compact. The blockchain platform will now explore ways to use non-fungible tokens to promote the UN's sustainability and equality goals.

Arguably, the blockchain company has already made significant progress in reducing the climate impact of NFTs through the development of its JumpNet blockchain. Additionally, Enjin is also part of the Crypto Climate Accord and intends to run the cryptocurrency industry entirely on renewable energy by 2025.

Enjin is, no doubt, doing good to the environment, but how good is his state right now? Well, the altcoin chain data presented some positives.

1. Divergence of the DAA price

ENJ's Price DAA Divergence has been in the bullish zone since the beginning of this month. In fact, this metric tracks the relationship between the price of the alt and the number of daily addresses that interact with it.

At press time, the cryptocurrency was quoted at $ 1,10 after posting a 10,10% decline in the past week. The fall in the price of the alt, coupled with the increase in the number of active addresses, seemed to trigger a "buy" signal at press time.

However, the recent price movements of ENJ are proof that this type of divergence has not always allowed the alt to range better in the market. Considering the phases between May 1st - May 11th and June 1st - June 11th, it can be clearly seen from the charts that the altcoin was unable to hit higher trading targets despite a bullish divergence on the charts.

Therefore, market participants must wait for the bullish signal to intensify further before entering the ENJ arena.

2.Volume

Enjin's volume saw a couple of peaks in the second week of July, but ended up decreasing in the following days. Indeed, on July 20, ENJ's volume projected a value of 165,65 million while the same, during the second week of April, effortlessly managed to cross the 2 billion mark a handful of times.

Now, while higher volumes do not always correspond to a price increase, it should be noted that the recent increases in ENJ have been mainly triggered by high volumes. So, for the price of ENJ to recover, this metric would soon have to change course.

3. NVT report

ENJ's network-value-to-transaction (NVT) ratio has seen a substantial increase in the past few hours. This increase is a sign that the value of the network has started to get too expensive and that ENJ's trading volumes would have had to increase to balance the facility. This signal, to some extent, also underlined that the price of ENJ could undergo further corrections before finally recovering. Looking at the state of the metrics, it can be concluded that it would take a little longer for ENJ to witness another rally on the charts.

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