Enjin Coin (ENJ) is showing bullish signs just above a crucial support zone. This could lead to an eventual breakout.
ENJ has been falling since hitting an all-time high of $4.84 on November 25. So far, it has fallen by 48%.
On December 4, the token bounced off the $2.25 horizontal support area (green circle). This created a long lower wick, which is seen as a sign of buying pressure. The bounce served to validate both the $2.25 zone and the middle of an ascending parallel channel, inside with previously traded ENJ.
So this is a crucial area of support. A breakdown below could indicate that the trend is bearish.
Trader in cryptocurrency @TradingTank tweeted an ENJ chart, indicating that the token is likely to rise towards $3.2.
Technical indicators on the daily time frame are showing bullish signs. This is most noticeable by the considerable bullish divergence (green line) that has developed in both the RSI and the MACD. This is a sign that often precedes bullish trend reversals.
However, an RSI move above 50 and a MACD move into positive territory would be needed to confirm the trend reversal.
If a breakout occurs, the nearest resistance zone would be at $3.35. This is a horizontal resistance zone and the 0.5 Fib Retracement resistance level.
The ENJ/BTC chart is decidedly bullish. The token broke above the 5200 satoshi area, which had previously acted as the all-time high resistance.
Currently, it is validating this area as support (green icon). This would allow for upward movement to a new all-time high and price discovery.
If that happens, the nearest resistance area would be at 9600 satoshis, created by the 1.61 outer Fib retracement level when measuring the most recent decline.
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