- Enjin Coin price recovery rally has paused.
- There are concerns about the NFT industry.
The Enjin Coin price has made some recovery in the past few days as cryptocurrencies stage an uneasy recovery. ENJ token is trading at $0.7270, which is about 58% above the lowest level last week. It has crashed by more than 80% from its all-time high, bringing its total market cap of more than $676 million.
NFT concerns
Enjin is one of the biggest platforms in the non-fungible token (NFT) industry. It is an inclusive platform that enables developers to mint and sell their NFT tokens.
Enjin owns Efinity, a blockchain platform developed on the Polkadot ecosystem. It is so popular such that it was among the winners of the most recent parachain auctions.
Efinity has been embraced by many organizations. For example, Microsoft used the network to build Azure Heroes, which is a digital badge reward network.
It was also used to build upcoming projects like The Six Dragons, Lost Arena, Age of Rust, and Space Misfits. Developers love its platform because of its low transaction costs and how easy it is to use.
Further, it has a cross-chain bridge, meaning that NFTs created on other chains can be imported to Efinity. Also, the network has a block time in seconds. It can be used in industries like gaming, art, collectibles, and music among others.
Learn more on how to buy Enjin Coin.
The Enjin price has been in a downward trend for months as investors worry about the NFT industry in a period of high-interest rates. In a statement on Tuesday, Jerome Powell insisted that the Fed will continue hiking interest rates. He also warned that this phase of high-interest rates will have some pain. In such a period, risky assets like NFTs will have more pain.
Enjin Coin price prediction
The daily chart shows that the ENJ coin has been in a spectacular downward trend in the past few days. The coin has moved below the important support at $1.1650, which was the lowest level on February 24th.
Enjin has moved below the 25-day and 50-day moving averages. The coin formed a hammer pattern as Terra LUNA crashed. In price action analysis, a hammer pattern is usually a bullish signal. However, this bullish trend has paused.
Therefore, there is a likelihood that the relief rally has faded and that the coin will likely resume the bearish trend. Therefore, the next key support level to watch will be at $0.5340.
