The Enjin Coin(ENJ) price rebounded from the breached resistance trendline, suggesting the trader’s sentiment has turned from selling on rallies to buying on the dips. Furthermore, the post-retest rally drove the altcoin by 17.5%, nearing the combined resistance of $1.9 and 200 DMA. Can traders breach this overhead resistance?
Key points:
- The daily-MACD indicator performs a bearish crossover.
- The intraday trading volume in ENJ price is $354.7 Million, indicating a 40.6% gain.
Source- Tradingview
The double bottom breakout resulted in the promoted bullish recovery of 44% in the ENJ price in the third week of March. The inflating prices hit the 200-day EMA after surpassing the bearish aligned 50 and 100-day EMAs and the resistance trendline.
However, the ENJ price failed to rise above the 200-day EMA resulting in the retest of the broken trendline. The retest phase declined the prices by 20% within 96 hours and created consecutive bearish engulfing candlesticks.
The buyers stepping in at the right moment resulted in the post-retest reversal and inflated the prices to the $1.75 mark. The bullish continuation aims to retest the 200-day EMA, and if the buyers sustain trend control, an upside move to $2.16 is possible.
However, the higher price rejection near the 100-day EMA opposes the bullish growth. Hence, closing below the 50-day EMA ($1.66) will undermine the bullish doctrine and result in a price fall to the $1.50 mark.
Technical analysis
The MACD line shows a reversal after the bearish crossover reflecting the bulls sabotaging the increased selling pressure. Hence, the MACD and signal lines are ready for a bullish crossover and initiate an uptrend in histograms.
The 100-day EMA suppresses the bullish growth, while the 50-day EMA has supported a Doji formation. However, the 20-day EMA remains a critical resistance that the buyers need to surpass for a sustained uptrend.
- Resistance levels- $1.9 and $2.15.
- Support levels- $1.5 and $1.28
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/markets/enjin-coin-price-prediction-enj-buyers-aim-to-regain-200-day-ema/