Enjin Coin price slumped in 2022 as investors reacted to the relatively underperformance of non-fungible tokens (NFT). ENJ dropped to a low of $0.26, which was much lower than its all-time high of $4.01. It was one of the worst-performing cryptocurrencies.
NFT demand slumped in 2022
Enjin is a blockchain project in the NFT industry. It has a complete suite of products that make it easy for people to mint NFTs and sell them to users globally. Also, it has a wallet that makes it possible for people to manage their NFTs.
Its most important platform is known as Efinity, which is a Polkadot parachain for NFTs. Further, Enjin provides solutions to help developers integrate NFTs with games. It also has a marketplace for people to buy and sell NFTs.
Finally, Enjin has JumpNet, which is a forever-free Ethereum scaling platform. Therefore, Enjin price does well when NFTs are doing great.
The opposite happened in 2022. As cryptocurrencies slumped, the volume of NFTs traded eased as well. The total volume of NFTs traded in the first-quarter of the year totaled over $19 billion. Since then, monthly spending on NFTs has dropped to less than $500 million. OpenSea monthly volume has also crashed.
Further, Efinity has had no major market share in the NFT industry. A closer look at its website traffic shows that the number of users crashed after peaking in Q1 of 2022. Therefore, there are concerns about whether Efinity will become a major player in the industry.
Enjin Coin price prediction
The daily chart shows that the ENJ price has been in a strong bearish trend in the past few months. As it dropped, it managed to move below the important support level at $0.3822, which was the lowest level on June 18. It also plunged below the 25-day and 50-day moving averages while the MACD moved below the neutral point.
Therefore, there is a likelihood that Enjin will continue falling as sellers target the next key support level at $0.20. A move above the resistance point at $0.3822 will invalidate the bearish view.
