Enjin Coin price rally has fizzled. Time to buy the ENJ dip?
The party has stopped for the Enjin Coin price. After staging a spectacular rally recently, ENJ has collapsed in the past two straight days and dropped below a key support level. It is still up by more 34% in the past 7 days.
Enjin rally stops
Enjin Coin has moved from obscurity to become one of the biggest blockchain platforms in the world. This has happened as the price of its token has jumped by more than 200% from its lowest level in October.
For starters, Enjin is a blockchain project that makes it easy for developers and companies to build non-fungible tokens (NFT) projects. Through the network, developers can build, distribute, and integrate NFTs.
In the past few months, Enjin’s platform has been adopted by some of the biggest companies in the world. For one, Microsoft uses its network to build a blockchain-based digital badge reward system.
The strong growth of the Enjin Coin price is mostly because of two main reasons. First, in the past few months, NFTs have become very popular. As such, many investors have rushed to invest in projects that have an NFT angle.
Second, in addition to NFTs, the ENJ price has jumped because of the metaverse. Through its network, developers can integrate NFTs into their marketplaces. The developers recently launched a $100 million fund for people building metaverse projects using its network.
Indeed, Enjin is not the only metaverse cryptocurrency that has soared in the past few weeks. Others like The Sandbox, Decentraland MANA, and Gala have all rallied. These coins have also taken part in the ongoing slump. So, what next for the Enjin Coin price?
Enjin Coin price prediction
On the four-hour chart, we see that the ENJ crypto price has been in a sharp downward trend in the past two days. The coin has managed to move below the 25-day moving average. At the same time, it is approaching the key support level at $3.60, which was the highest level since November 7th.
Oscillators like the money flow index (MFI) have also declined from the overbought level. Therefore, in my view, I suspect that the coin will keep falling in the near term and possibly test the support at $3.60. In the longer term, the coin will then rebound. This means that this is not the right time to buy the dips.