The Enjin Coin price has fallen more than 20% from yesterday’s all-time high and looks likely to extend the losses in the coming sessions.
Enjin Coin (ENJ) is trading lower on Friday at $3.918 (-7%) but holding a 50% gain so far in November. Despite the small correction, ENJ’s market cap is a respectable $3.25 billion, ranking the token, the 55th most-valuable cryptocurrency behind PancakeSwap. Like many gaming and Metaverse assets, including Gala and Decentraland, ENJ reached a record valuation in November. Since Facebook rebranded to Meta late in October, Investors have been furiously snapping up anything Metaverse related. However, the euphoria is reaching a fever-point, with many crypto prices looking scarily overstretched. As a result, in my opinion, the near-term risk of a correction is extremely high.
ENJ Price Analysis
The daily chart shows that the Enjin Coin price has fallen below the former all-time high of $4.033, now the first resistance level. Additionally, the Relative Strength Index is pointing lower, reinforcing the growing negative momentum.
As long as ENJ remains below $4.033, a logical target is February’s former ATH of $2.965. At the same time, a steeper sell-off could target the November 10th low of $2.540, around 35% below the current price.
On that basis, my immediate view is lower, with a potential price target of $2.540. However, a daily close above $4.033 invalidates the bearish thesis.
Enjin Coin Price Chart (Daily)
For more market insights, follow Elliott on Twitter.