Enjin Currency (ENJ), is showing bullish signals just above a critical support area. This could be a sign of a breakout.
ENJ prices have been dropping since they reached an all-time high of $4. 84 on Nov 25. So far, it has decreased by 48%.
On December 4, the token bounced at $2. 25 horizontal support area (green circle). This caused a longer lower wick which is a sign that there is buying pressure. This bounce validated both the $2. 25 area and the middle of an ascending parallel channel, inside with ENJ previously traded.
This is why it is an important support area. It could be that it is falling below this level, which would indicate that the trend has turned bearish.
Cryptocurrency trader @TradingTank tweeted an ENJ chart, stating that the token is likely to increase towards $3.2.
Technical indicators in the daily time-frame are showing bullish signs. This can be seen in the large bullish divergence (green lines) that has occurred in the MACD and RSI. This sign is often seen before bullish trend reversals.
However, an RSI movement above 50 and a MACD movement into positive territory would be required in order to confirm the trend reversal.
If a breakout occurs, the closest resistance area would be at $3.35. This is the horizontal resistance area. It also contains the 0.5 Fib resistance level.
The ENJ/BTC chart has a clear bullish bias. The token has broken out above the 5200 satoshi area, which had previously acted as the all-time high resistance.
Currently, the area is being validated as support (green icons). This would enable a rise towards a new all time high and price discovery.
If one occurs, the closest resistance area would be at 9600 satoshis, created by the 1. 61 external Fib retracement level when measuring the most recent drop.
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