- ENJ coin price has erased some of the gains it made last week.
- The volume has dropped sharply after it reached a multi-month high.
Enjin Coin price dipped sharply on Monday as last week’s bullish momentum faded. The ENJ token dropped to a low of $0.4228, which was much lower than this week’s high of $0.5013. It remains about 30% above the lowest level this month.
ENJ volume slips
Enjin price had a strong performance last month as investors reacted to the upcoming launch of NFT.io, a marketplace powerered by its technology. The platform will have faster speeds, lower transaction costs, and a wider variety of NFTs for traders.
However, there are several concerns about the platform considering that the trends in the NFT industry has been a bit weak in the past few months. Companies like OpenSea and Magic Eden have seen their total sales drop in the past few months. In December, sales dropped to a 16-month low. And in February, OpenSea decided to temporarily drop its fees to zero.
Read more: How to buy Enjin Coin.
Further, the industry has gotten highly competitive in the past few months, with the biggest players competing for market share. Some of the top players in the industry are Magic Eden, OpenSea, and Rarible. A closer look at exchanges that launched their NFT marketplaces like Theta have seen limited success.
The other reason why ENJ price declined is that volume traded in exchanges has dipped in the past few days. The volume jumped to a high of 465 million on Friday last week, the highest level in months. This jump happened as the demand for the coin jumped. However, the increase was short-lived as the overall volume has nosedived to les than 50 million.
Looking forward, the next key catalyst for Enjin price will be the upcoming US consumer inflation data scheduled on Wednesday. These numbers will be watched closely because they will have an impact on the next decision by the Federal Reserve.
Enjin Coin price prediction
The 4H chart shows that the ENJ price has been in a strong bearish trend in the past few days. As it dropped, it moved below the important support level at $0.4430, the highest point in March. It has also crossed the important 50-period moving average while the Relative Strength Index (RSI) has moved below the neutral point.
Therefore, ENJ will likely continue falling as sellers target the next key support at $0.40 and then resume the bullish trend. We can’t rule out a situation where the coin retests last week’s high of $0.50.
