Enjin Coin Price Punched in the Face. Buy the ENJ Dip?

Summary:
• The Enjin Coin price has struggled in the past few weeks even after some positive developments about the ecosystem.

The Enjin Coin price has struggled in the past few weeks even after some positive developments about the ecosystem. The ENJ token is trading at $2.36, which is about 52% below the highest level in 2021. It has a market capitalization of more than $2.19 billion, making it the 65th biggest cryptocurrency in the world.

Enjin is one of the leading platforms in the non-fungible tokens (NFT) industry. The Polkadot-built project helps developers build and distribute their NFTs. This week, Enjin made some important announcements. 

First, it announced that it will launch its headquarters in the Bloktopia metaverse. In this HQ, the developers will showcase their NFTs and other products. This announcement came a few months after Enjin launched a $100 million metaverse fund in the United States. The fund will be used to support developers in the ecosystem.

Second, Efinity, its scalable cross-chain infrastructure platform, won the sixth and last parachain auction. It managed to raise about $214 million in Polkadot. This means that it will now be onboarded to the ecosystem in March 2022.

Enjin Coin price prediction

The daily chart shows that the ENJ price has been in a bearish trend in the past few weeks. The coin has fallen by 52% from its highest level in 2021. Along the way, it has moved below the 25-day and 50-day moving averages. It is also slightly above the key support level at $2.15, which was the lowest level in December. The MACD has also moved below the neutral level. 

Therefore, since it has formed a head and shoulders pattern, the coin will likely have a bearish breakout, with the next key support being at $1.57, which is about 50% below the current level.