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Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought-about funding recommendation
Enjin Coin has been bullish for the latter half of March, however the latest sell-off noticed a deep retracement. Can ENJ get well? The decrease timeframe charts akin to 1-hour offered a bearish image. The value has damaged under the $1.7 mark, and up forward is a heavy band of resistance from $1.75 to $1.86. Data from Messari confirmed that buying and selling quantity was not very excessive when the value dropped towards $1.5, nonetheless, the following bounce up to now couple of days has seen very excessive buying and selling quantity.
ENJ- 1 Hour Chart
Supply: ENJ/USDT on TradingView
The uptick in buying and selling quantity might be consultant of market individuals shopping for the dip. However why are they shopping for the dip? On the hourly chart, the market construction had been bearish up to now couple of days. This modified when ENJ pushed previous $1.69 and was additionally in a position to briefly poke its nostril above the $1.75 resistance stage.
Greater timeframes confirmed that ENJ leaned bullish in early March when it broke the prior downtrend’s decrease excessive at $1.53. Previously couple of days, this space has seen robust demand arrive. Furthermore, the Fibonacci retracement ranges (yellow) plotted had been primarily based on ENJ’s transfer up from $1.27 to $1.97, and the value did see some demand on the 61.8% retracement stage at $1.54 in addition to the help stage at $1.47.
Simply above $1.75, the pink field from $1.75-$1.85 is a robust resistance zone, with $1.75-$1.8, specifically, being a bearish order block.
Rationale
Supply: ENJ/USDT on TradingView
The RSI climbed above impartial 50 up to now few days, whereas the Superior Oscillator additionally remained above the zero line for the previous couple of days. This recommended that momentum leaned towards the bulls, but it surely was not but strongly bullish.
The CVD has additionally been inexperienced in the identical time interval to point out shopping for strain behind the rally.
Conclusion
There was robust resistance simply above $1.75 for Enjin Coin bulls to beat. The momentum was bullish and there was some regular demand behind the rally. Warning was advisable, as a transfer previous $1.75 and its retest as demand might be a much less dangerous shopping for alternative than shopping for it beneath the $1.75 resistance.
