The Enjin Coin price strong rebound has stalled in the past few sessions. ENJ, its Ethereum-based token, is trading at $2.57, which is a few points below this week’s high of $2.7. It has risen by more than 20% from its lowest level this month. Its total market capitalization stands at more than $2.4 billion.
What is Enjin?
The concept of the metaverse has become one of the top topics in the blockchain industry lately. The industry’s goal is to create a platform where people can interact intuitively in the digital space. For example, instead of meeting just on Zoom or Microsoft Teams, people can hold immersive meetings.
The technology has many applications such as virtual concerts, virtual trips, and virtual learning. One of the most popular use of the metaverse is in the gaming industry. Indeed, we have recently seen popular gaming platforms like Decentraland, Gala Games, and The Sandbox take off.
Enjin is an Ethereum-based platform that is in the metaverse and non-fungible token (NFT) industries. The platform provides developers with the tools that they need to create quality NFT products. Today, many companies and developers have embraced Enjin for their development needs. This explains why the Enjin Coin price jumped to an all-time high of $4.8 in November.
Recently, however, the ENJ price has retreated by more than 47% from its all-time high. It is not alone. Many metaverse and gaming coins that did well in November like Decentraland and Sandbox have all retreated. This has happened as the enthusiasm of the industry wane and as investors take profit.
Meanwhile, the coin’s price has retreated as Enjin’s Efinity project continues to take part in the ongoing Polkadot crowd auctions. Efinity is a similar platform to Enjin that is built on Polkadot’s network.
Enjin Coin price prediction
A closer look at the four-hour chart shows something unique. We see that the coin’s price crashed to $2.05 in December. Since then, it attempted to bounce back but it found a strong resistance that is shown in blue.
Meanwhile, the Enjin Coin price found a strong support at $2.178. This performance has a close resemblance to what happened in cryptocurrencies like Bitcoin and Ethereum in July.
It then made a bullish breakout above the blue trendline. Therefore, I suspect that the ENJ price will retreat and retest this line and then resume the bullish trend.
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