Enjin Coin price is hovering near its lowest level this year as market conditions deteriorate. The ENJ token has collapsed by over 86% from its all-time high. Its decline has happened at a time when other financial assets sell-off. Stocks have tumbled while gold has declined to the lowest level in months. Similarly, non-fungible tokens have continued to plummet.
NFT concerns
Enjin is a leading player in the gaming and NFT industry. Developers use its platform to build applications that incorporate NFTs. For example, companies like Microsoft have used its Efinity platform to build NFT products. Enjin also runs EnjinX, a marketplace for NFTs. The platform has over 8,000 on sale, with ENJ being the main cryptocurrency for the platform.
There are several reasons why Enjin has crashed recently. First, recent data shows that demand for NFTs is crashing. For example, data shows that NFTs like Bored Ape Yacht Club and Azuki have plummeted their prices and volume. As such, there are concerns that these NFTs will not do well in a period of high-interest rates.
Second, there are concerns about the health of the financial market. This year, stock prices have declined sharply, with the Nasdaq 100 falling by over 28% from its highest level this year. Similarly, the S&P 500 index has declined by over 18% from its YTD high. The same trend has happened in other assets like gold and bonds. Gold has pulled back by 12% from its highest point this year, while bond yields have jumped to a multi-year high.
Enjin Coin price prediction
On the 4H chart, we see that the ENJ price has been in a tight range in the past few days. During this time, the coin formed a symmetrical triangle pattern. This triangle can lead to a breakout on either side. On Wednesday, it managed to move below its lower side. It has also moved below the 25-day moving average. The coin has also declined below the descending trendline shown in red.
Therefore, there is a possibility that the coin will continue falling as bears target the next key support level at $0.5600. Therefore, the stop for this trade will be at $0.75.
