The Enjin Coin price has completely lost its bullish momentum. The ENJ coin is trading at $2.53, which is about 50% below its highest level in November. This drop has seen its total market capitalization drop to more than $2.5 billion.
Non-Fungible Tokens (NFTs) have done relatively well this year. It is estimated that deals worth more than $5 billion have been executed in the industry. Most of these deals have happened in platforms like OpenSea, the giant marketplace valued at more than $1.5 billion. Others have happened in gaming metaverse networks like Decentraland and Sandbox.
Enjin has become one of the best-known NFT platforms in the world. The company allows people to create, distribute, and integrate NFTs. This explains why the Enjin Coin price jumped by more than 570% from July this year to November.
Enjin price has declined for two main reasons. First, this drop is part of profit-taking because of its strong performance. Second, it has dropped because of the overall decline of cryptocurrencies. In the past few days, we have seen most cryptocurrencies like Bitcoin and Ethereum slump. Third, some analysts are concerned about the NFT industry and whether it is creating a bubble.
On the daily chart, we see that the ENJ price has been under intense pressure in the past few days. Indeed, it has crashed in the past six straight days and erased 50% of its value. Today, the price is still above the ascending trendline that is shown in red. This trendline connects the lowest levels since May this year. It has also moved slightly below the 25-day and 50-day moving averages.
Therefore, the overall outlook for the coin is bearish. This outlook will be confirmed if the price moves below the key support level at $2, which was the lowest level during the weekend. A move above $3 will signal that there are still buyers left in the market.
This post was last modified on Dec 06, 2021, 07:36 GMT 07:36