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ENJ price has been in a downtrend since dropping from its year-to-date peak of $0.55 in February. On-chain data show that euphoric market sentiments and growing panic among long-term investors could slow down the momentum for a rebound. 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. Following a strong start to 2023, metaverse and GameFi projects have recently struggled to keep up the momentum. Bearish signals from critical on-chain metrics suggest that the recent ENJ price correction could be further exacerbated.
Panic Grows Among Enjin Long-Term Holders
According to data from Santiment, there is growing sell pressure among long-term participants on the Enjin network. Tentatively, this could trigger a further price drop in the coming weeks. The chart below shows how Enjin Coin Age Consumed has increased significantly compared to the values recorded in late February and early March.
Between March 14 and April 10, ENJ Age Consumed spiked by 2,000%, from around 112 million to 2.57 billion.
An increase in Age Consumed means coins held by long-term investors are on the move as they position to book profits. With older coins being brought back into circulation, ENJ could experience increased supply and heightened sell pressure across the markets.
Similarly, a comparative rise in the mentions of the Enjin project across crypto media platforms confirms the bearish outlook. Since recording 10 social mentions on March 13, ENJ’s Social volume reached a recent peak of 604 mentions on April 7.
A closer look at the historical data reveals that spikes in Social Volume have often been followed by ENJ price downswing. If the social volume remains high, it could dissuade new entrants looking to avoid buying when market sentiment is euphoric.
In summary, the coinciding spikes in Age Consumed and Social volumes are critical on-chain indicators of a bearish outlook. Enjin Coin holders can expect more downside in the coming weeks if these trends are not reversed.
ENJ Price Prediction: Fragile Support at $0.40
IntoTheBlock’s price distribution data shows a potential sell-off from a significant cluster of holders breaking even at $0.45, which could see ENJ retrace below $0.40.
As ENJ approaches the $0.45 price point, 2,700 addresses holding 42.1 million coins could begin to book profits. This sell-off frenzy could send ENJ below $0.41, where 4,000 addresses holding 21 million coins could offer support.
Failure to hold this support could see the Enjin Coin price drop toward $0.33. At this point, another cluster of 21,000 addresses holding 170 million coins will look to prevent a drop below their break-even price.
Yet, the bulls could invalidate that premise if ENJ can break above $0.45. But the resistance of 2,700 addresses holding 42.1 million coins could make it an uphill task.
However, if ENJ breaches that resistance, it could approach a new 2023 peak at $0.76 before going up against another break-even army of 19,000 addresses holding 354 million coins.