A few months ago, we had the opportunity to analyze the course of ENJ. Since this analysis, the ENJIN protocol token has continued to evolve in a range along with the rest of the cryptocurrency market. What are the technical levels to monitor? Is bullish or bearish momentum to be expected over the next few weeks, or will the price continue to be flat? In this new analysis from ENJ, you will discover the bias to have on the asset, the areas you should keep in mind, and the evolution that has taken place in recent weeks. Without further ado, let’s jump right into TradingView.
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ENJ is building strong support against the dollar.
After an all-time high at $4.84ENJ enrolled in a powerful downtrend. After breaking down his trio of EMA 13/25/32, he operated two bearish rejections while evolving on a support zone at 1.16/1.30 dollars. This was in confluence with the MA100. Once this area was lost, a powerful decline took place towards a technical zone at $0.34/$0.42. Currently building support on these price levels, a rejection took place a few weeks ago on the EMA13.
ENJ has been evolving for several months between the support we have just identified and resistance at $0.73. When the price breaks out of this range, it will probably be marked by large candles. Currently, the price compresses between $0.40 and the EMA13. Volatility will soon be back on ENJ. If the asset manages to break free from this moving average at $0.5, a rebound of greater magnitude could take place towards the EMA25 at $0.65 and the EMA32 which is in confluence with the upper limit of your range.
If ENJ does not manage to register a rebound of such amplitude and is rejected for the umpteenth time on the EMA13, a new bearish leg could take place. On several occasions, when ENJ failed to retake the first EMA, it entered several bearish candles. In this context, if the markets tend to turn red, we can consider a breakout of the support with a return to the upper limit of a range dated 2019/2020.
A rebound is imminent for the next few days.
To analyze a smaller time scale, let us now use the volume profile tool for determining the key levels using volume analysis. For several weeks, the asset had been moving under its trio of EMAs which marked the downtrend. Having managed to hold on somehow to the Value Area LowENJ has freed itself from its three EMAs, which gives the premier signal for a trend reversal on the rise. Currently, the asset is trading below the POC (Point of Control) is the level where the volume traded is the greatest, which makes it resistant as long as it will not be freed from it. If it succeeds, we can consider new bullish targets for the asset:
- A return to $0.48, a technical threshold that, after acting as support several times, is now resistance.
- The MA100 is currently at $0.524 and the High Volume Node is at $0.54.
- The Value Area is High at $0.642 and the resistance is at $0.734 which is in confluence with the EMA200.
ENJ is underperforming against the king of cryptocurrencies?
ENJ’s situation is quite complex with bitcoin. Since the beginning of 2022, the asset has been evolving below the EMA200 as well as the MA100. The latter was broken to the upside in August with a few weeks of continuation, before a bearish reintegration. Bearish rejections are numerous, ENJ blocked its MA100 the day before yesterday. This momentum is on track to continue as long as the trio of EMA is not taken over as well as the area represented in blue at 2222/2250 satoshis. If ENJ overcomes it, the token will take the direction of 2,359 satoshis and then the MA100. This would allow the asset to be in good shape, and the probability of a rise against the dollar would be greater.
However, let’s not sell the bear pelt until you kill it since ENJ is currently under resistance. If it fails to break up, we can expect continued underperformance of the asset over the next few weeks. The upside potential would be less important, ENJ could be led to return to the technical zone which is located at 2,014 satoshis.
Here we are at the end of the technical analysis of the ENJ cryptocurrency. You can see that the situation is not simple. As the first signs of an upward trend reversal take place, the asset is still trading below the POC against the USD and below horizontal resistance in confluence with the trio of EMA against the king of cryptocurrencies, BTC. Thus, ENJ will have to overcome a few technical levels if it wishes to extend the rebound that started a few days ago. If it succeeds and is in a favorable position against Bitcoin, the next few weeks could be marked by the validation of certain bullish targets. For the moment, it is better to wait for additional signs before taking a position. For the more aggressive who want to anticipate a rise, a reduction in position size is also possible.
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