This Pattern Points to a Bearish Breakout
The Enjin coin price has been under pressure as concerns about the future of non-fungible tokens (NFT) in an era of Fed rate hikes. ENJ, the platform’s native token, is trading at $2.445, which is about 17% above the lowest level this month. It has a total market capitalization of over $2.2 billion, making it the 67th biggest coin in the world.
Enjin is a leading blockchain platform that is in the non-fungible token (NFT) niche. The project has created a platform where developers can build and monetize their NFTs.
Enjin has also built a faster project known as Efinity that recently secured a slot in the recent parachain auctions. Its crowd loan raised about 7.7 million DOTs worth over $200 million. In exchange, these holders will be allocated 200 million Efinity tokens.
The Enjin price has struggled in the past few months. It has declined by about 50% from its highest level last year. This performance is mostly because investors are worried about whether the NFTs, which are risky assets will do well in a period of higher interest rates. This also explains why other NFT-focused platforms like Decentraland, Sandbox, and Gala have underperformed in the past few weeks.
Enjin coin price prediction
The four-hour chart shows that the ENJ price has formed a strong support lately. It declined to a low of $2.20, which was the lowest level in December. It struggled moving below that level several times in December. Now, the coin has moved to the 25-day and 50-day moving averages. It has also formed a descending triangle pattern.
Therefore, there is a likelihood that the Enjin price will have a bearish breakout in the near term. This view will be confirmed if the price manages to move below the key support at $2.20. If this happens, the next key support to watch will be at $2.0. The bearish view will be invalidated if the price moves above $2.67.
