Enjin Coin price prediction: Is this a dead cat bounce?
- The Enjin Coin price has made a strong comeback in the past few days.
- It has risen by about 26% from its lowest level on Sunday.
- This could be a dead cat bounce meaning that the bearish trend could resume.
The Enjin Coin price has bounced back in the past few days after crashing hard during the weekend. ENJ is trading at $1.6753, which is about 26% above the lowest level on Sunday. It has a market capitalization of over $1.7 billion, making it the 70th biggest cryptocurrency in the world.
The Non-Fungible Token (NFT) industry is one of the biggest promises of the blockchain industry. It promises that anyone can create something unique and sell it in a way that cannot be hacked.
The NFT sector took off in 2021 as people exchanged products worth more than $24 billion in 2021. That was remarkable growth for an industry that was barely in existent a few years earlier.
Still, there are concerns about the NFT industry. Some analysts believe that the industry has become a bubble that could burst when central banks start to tighten.
There are many blockchain platforms in the NFTs space. Some of the best-known ones are Immutable X, Tezos, Ethereum, Decentraland, and The Sandbox.
Enjin is also a blockchain platform in the NFT industry. It provides tools that help people to build and sell their NFT collections.
In 2021, it enrolled its Efinity project to the Polkadot’s parachain auction, in which it raised DOTs worth over $200 million.
The Enjin Coin price has struggled in the past few months as concerns about the NFT industry remain. Indeed, recent data suggests that the industry has started slowing down.
It has also fallen because of the overall weakness seen in the cryptocurrency industry. This sell-off has happened because of the rising worries that the Federal Reserve and other central banks will embrace a more hawkish stance as inflation rises.
These fears are seen in the cryptocurrency fear and greed index. The index has fallen to the extreme fear zone of about 15.
Enjin Coin price prediction
The daily chart shows that the ENJ price has been in a strong bearish trend in the past few months. Precisely, the coin has crashed by over 67% from its all-time high of almost $5. It has dropped below the 25-day and 50-day exponential moving averages (EMA).
The sell-off accelerated after the coin fell below the key support level at $2.15, which was the lowest level in December.
Therefore, there is a likelihood that the Enjin price will continue falling as bears target the next key support level at $1.15, which was the lowest level in July. As such, this recovery is part of a dead cat bounce, which is a temporary jump during a bearish trend.