- Enjin token has been trading in a descending parallel channel for the past several days, meanwhile, the bulls are aiming to break the resistance level.
- The On Balance Volume (OBV) indicator on the daily price chart makes a gradual upward move during a bullish slide.
- Speculators saw a Spinning Top candlestick on 3rd June, as a result, buyers saw a gain of around 23% in the last 3 days.
Enjin token appears to be in a bullish trend as per the higher-highs structure on the daily price chart. Nevertheless, the ENJ token has been seen inside a falling parallel channel for past 60 days. But now, bulls are aiming to break this bearish formation.
During the pump and dump, speculators saw a Spinning Top candlestick on June 3, as a result, buyers saw an increase of about 23% over the past 3 days and this bullish signal fueled the bears’ acceleration. Meanwhile, the weekly price candle is trading inside the previous one, while the bulls are celebrating a 14% gain this week.
Price action shows higher formation while ENG token is going to break the resistance level of the parallel channel. Meanwhile, the Enjin token trades at the $0.548 mark at the time of writing.
During the uptrend, the trading volume also increases gradually, resulting in a gradual upward move in the On Balance Volume (OBV) indicator on the daily price chart. Rising volume during a bullish trend suggests buyer aggression as BTC maintains the $20K area.
ENJ price trades near the resistance zone
In the context of the daily price scale, ENJ price is struggling near the 35 EMA line of the EMA Ribbon Indicator. Meanwhile, the bulls are managing the bullish momentum well towards the 200 EMA line (Yellow).
Moreover, the Stoch RSI indicator is again turning upwards. This bullish signal could lead to a breakout of the bearish parallel channel.
Conclusion
Enjin token is trading just below the resistance trendline of a descending parallel channel. During the uptrend, the trading volume also increases, therefore, a bullish breakout is likely to occur soon.
Resistance level- $0.80 and 1.0
Support level- $0.40 and $0.30
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
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Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/07/05/enjin-price-analysis-enj-speculators-await-bullish-breakout-there-may-be-short-covering-here/