The Enjin coin price has been under pressure as concerns about the future of non-fungible tokens (NFT) in an era of Fed rate hikes. ENJ, the platform’s native token, is trading at $2.445, which is about 17% above the lowest level this month. It has a total market capitalization of over $2.2 billion, making it the 67th biggest coin in the world.
Efinity is a cross-chain highway for NFTs
Despite the skepticism of many about investing in NFTs, plenty of big and small investors are quite comfortable with the view that NFTs will only grow over time, possibly seeing huge gains in 2022 alone.
Enjin is a leading blockchain platform that is in the non-fungible token (NFT) niche. The project has created a platform where developers can build and monetize their NFTs.
Enjin built a project known as Efinity, which serves as the infrastructure for an open Metaverse. Efinity recently secured a slot in the recent parachain auctions, raising about 7.7 million DOTs worth over $200 million. In exchange, these Crowdloan supporters will be allocated 200 million Efinity tokens.
ENJ token price prediction January 2022
The Enjin price has struggled in the past few months. It has declined by about 50% from its highest level last year. This performance is mostly because investors are worried about whether the NFTs, which are risky assets, will do well in a period of higher interest rates. This also explains why other NFT-focused platforms like Decentraland, Sandbox, and Gala have underperformed in the past few weeks.
The four-hour chart shows that the ENJ price has formed a strong support lately. It declined to a low of $2.20, which was the lowest level in December. It struggled moving below that level several times in December. Now, the coin has moved to the 25-day and 50-day moving averages. It has also formed a descending triangle pattern.
Therefore, there is a likelihood that the Enjin price will have a bearish breakout in the near term. This view will be confirmed if the price manages to move below the key support at $2.20. If this happens, the next key support to watch will be at $2.0. The bearish view will be invalidated if the price moves above $2.67.
