Enjin Coin (ENJ) remains bullish despite the recent sell-off
Enjin Coin (ENJ) is showing bullish signs just above a critical support area. This could lead to an eventual outbreak.
Bounce from the important support area
ENJ has been down since it hit an all-time high of $ 4.84 on November 25. So far it’s down 48%.
On December 4, the token bounced off the support area of $ 2.25 (green circle). This has resulted in a long wick at the bottom, which is a sign of pressure to buy. The rebound has also confirmed the $ 2.25 zone and the center line of the ascending parallel channel as support.
Hence, it is an important area of support. A break below this could indicate a bearish trend.
USDT chart | Source: TradingView
Trader @TradingTank tweeted an ENJ chart and said the token is likely to rise to $ 3.2.
Technical indicators in the daily timeframe show bullish signals. This is particularly evident from the significant bullish divergence (green line) that has formed in both the RSI and the MACD. This is a sign that often anticipates an upward trend reversal.
However, the RSI needs to hover above 50 and the MACD is moving into positive territory to confirm the trend reversal.
If there is a breakout, the next resistance is at $ 3.35. This is the horizontal resistance range and the 0.5 fib retracement resistance.
ENJ / BTC
The ENJ / BTC chart is clearly bullish. The pair moved above the Satoshi area of 5200 that had previously acted as resistance to all-time highs.
We are currently in the process of confirming this zone as support (green symbol). This will allow an upward move towards new all-time highs and pricing.
When a breakdown occurs, the closest area of resistance is at 9600 satoshis, created by the external fib retracement level of 1.61 when the recent decline is measured.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.