Enjin hints at further dips after failure to hold bulls

Enjin Coin (ENJ/USD) has been on a notable downtrend over the past few months that has coincided with a steep correction across the broader market. In late November, ENJ attempted to make a break towards higher levels, but this false break was followed by a steep dip.

While the market recovery shows signs of an ENJ break, further dips for this altcoin are more likely.

Enjin on a short-term recovery  

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At this point, a recovery in Enjin mainly depends on the support garnered from the broader cryptocurrency. With Bitcoin (BTC/USD) still trading below $50K, ENJ has very little chance of making a strong break towards its highs.

On November 25, ENJ managed to create an ATH at $4.82. This was a time when the majority of altcoins were making notable gains. However, prices took a sharp downward trajectory a few days later, and ENJ has not been spared from this.

Currently, ENJ is around 50% below this ATH, but it has shown greater resilience in holding on to most of these gains. However, the bears are still calling for dips below $2, which is likely when both market and buyer support fail.

Volatility in Enjin’s prices and the broader crypto market is still high. This is why the coin has failed to hold on to most of the gains made. Over the past week, ENJ managed to create highs above $2.50, and this could happen again if buyers come into the market again. Setting a target at $3 could also happen if the broader market gears up for a strong bull run.

Metaverse coins record major selloffs

The slight gains made by ENJ are a slight recovery from what happened on December 21, when metaverse coins witnessed an overall selloff. As investors shifted their investments towards other projects, these coins made major losses.

Lately, the metaverse and metaverse-related coins and blockchains have seen much interest. Enjin is one of the networks believed to be a major player in the metaverse. However, the current situation in the market shows some profit-taking from short-term traders who bought coins when the market was on an uptrend.