Amid Bullish Rally, Why Enjin Coin Price Is At Risk Of 17% Drop
Similar to the majority of major cryptocurrencies, the Enjin coin price witnessed a sustained recovery in the first two weeks of 2023. The coin price has rallied 72.5% since January 1 and currently trades at the $0.39 mark. Furthermore, the U-shaped recovery in the daily chart reveals the formation of a rounding bottom pattern. Here’s how this bullish reversal could influence the ENJ coin’s future price.
Key Points:
- A higher price rejection at $0.4 resistance indicates a potential pullback in the ENJ price.
- A bullish crossover between the 20 and 50 DMA would increase the buying pressure on the market.
- The intraday trading volume in ENJ price is $164.4 Million, indicating a 372% gain.
Source- Tradingview
The rounding bottom pattern is one of the famous trend reversal patterns that offer steady recovery in any asset. Earlier today, the Enju coin witnessed a significant inflow that surged its market value by 20% and breached the local resistance of $0.4. However, a sudden downfall in the crypto market in the last few hours has evaporated these gains considerably and formed a higher price rejection at mentioned resistance.
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This rejection indicates high supply pressure, and If the daily candle closes below $0.4 resistance, the ENJ price would likely witness a minor pullback. This potential correction could tumble the price by 17.5% and revisit the $0.35 support. If this local support recuperates bullish momentum, and Enjin coin will resume the prevailing trend.
Thus, under the influence of the rounding bottom pattern, this altcoin should eventually ride a steady recovery to hit the $0.49-$0.5 neckline resistance.
Technical Analysis
Vortex indicator: the enlarged gap between the VI+ and VI- slope projects a sustained buying of the market.
DMAs: In case of a possible retracement, the reclaimed DMAs(20, 50, and 100) could offer additional support to the rising prices. Conversely, the 200 DMA wavering around the $0.44 mark suppresses the bullish growth.
Enjin Coin Price Intraday Levels-
- Spot rate: $0.39
- Trend: Bullish
- Volatility: Medium
- Resistance level- $0.4 and $0.49
- Support level- $0.325 and $0.275
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