The Enjin Coin price has collapsed to the lowest level since October 28th as the cryptocurrency sell-off accelerates. The ENJ token is trading at $1.9830, which is about 60% below the highest level in 2021. Its market capitalization has shrunk to over $1.8 billion, making it the 70th biggest cryptocurrency in the world.
Enjin is a blockchain project that is in the non-fungible token (NFT) niche. The platform helps developers build and sell NFTs. It also owns Efinity, a platform that helps developers to build NFTs and sell them at a low cost. Recently, Efinity took part in the Polkadot slot auctions and won about $200 million from investors.
The ongoing sell-off of Enjin is likely because investors are concerned about whether NFTs will be successful in a period when the Federal Reserve is hiking interest rates. Historically, these risky assets tend to underperform in tight monetary conditions.
The Enjin Coin price has also declined after the Russian central bank recommended for the government to ban cryptocurrencies and mining. Other regulators in Europe and the United States are coming up with regulations.
Enjin Coin price forecast
The daily chart shows that the ENJ price has been in a deep sell-off in the past few months. This performance is in line with that of other cryptocurrencies and my previous ENJ prediction. Worse, the coin managed to move below the key support at $2.15, where it struggled to move below several times before. It has also moved below the 200-day moving average.
Therefore, the path of the least resistance for Enjin is lower. If this happens, the next key support to watch will be at $1.15, which is about 43% below the current level. This view will be invalidated if the price moves above the resistance at $2.5.