ENJ price has been in a downtrend since its decline from the year-to-date peak of $0.55 in February. Data across the chain shows that euphoric market sentiment and growing panic among long-term investors could slow the momentum of the recovery. Will ENJ drop further in the coming weeks?
Enjin Coin (ENJ) is the native cryptocurrency of the Enjin Network, an ecosystem of interconnected, blockchain-based social gaming products. After a solid start to 2023, Metaverse and GameFi projects have struggled lately to keep up the momentum. Bearish signals from important on-chain metrics suggest that the recent ENJ price correction could worsen further.
Panic grows among long-term Enjin holders
According to Santiment data, there is increasing selling pressure among long-term participants in the Enjin network. Tentatively, this could lead to a further price drop in the coming weeks. The graph below shows how the lifespan of Enjin Coin Coin has increased significantly compared to the values recorded in late February and early March.
Between March 14th and April 10th, lifetime ENJ consumption increased by 2000%, from about 112 million to 2.57 billion.
The increase in amortized life means that the coins held by long-term investors are on the move because they are in a position to turn a profit. As old coins re-circulate, the ENJ could face an oversupply and mounting selling pressure across the markets.
Likewise, a comparative rise in Enjin Project signals across encrypted media platforms confirms the bearish outlook. Since 10 social signals were recorded on March 13, ENJ’s social volume recently peaked at 604 signals on April 7.
A closer look at the historical data reveals that spikes in social volume have often been followed by lower ENJ price. If social volume remains high, it could discourage newcomers looking to avoid buying when market sentiment is euphoric.
In summary, concurrent rises in consumed and social age volumes are important on-chain indicators of a bearish outlook. Enjin Coin holders can expect further declines in the coming weeks if these trends are not reversed.
ENJ Price Prediction: Fragile Support at $0.40
IntoTheBlock’s price distribution data shows potential sell-off from a large group of holders even at $0.45, which could see ENJ rebound below $0.40.
With ENJ approaching the $0.45 price point, 2,700 addresses containing 42.1 million coins could start to turn a profit. This selling frenzy can send ENJ below $0.41, where 4,000 addresses containing 21 million coins can provide support.
Failure to hold this support could send Enjin Coin price down towards $0.33. At this point, another batch of 21,000 addresses containing 170 million coins will prevent a drop below par.
However, the bulls can invalidate this hypothesis if the ENJ manages to break above $0.45. But resisting 2,700 titles containing 42.1 million coins would make it a daunting task.
However, if ENJ breaks through that resistance, it could approach a fresh 2023 high of $0.76 before rallying against another army of 19,000 addresses holding 354 million coins.
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.