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ENJ Technical Analysis: Triangle Pattern Holds The Upcoming Trend

cryptoknowmics.com 05 July 2022 10:08, UTC
Reading time: ~2 m

ENJ price remains trapped under a symmetrical triangle pattern with the 50-day SMA acting as a dynamic resistance. Will buyers surpass the SMA? Key technical points:

  • The ENJ market price action shows a symmetrical triangle pattern in the daily chart.
  • The market price challenges the 50-day SMA.
  • The 24-hour trading volume of Enjin is $104 Million, indicating a rise of 63%.

Past Performance of ENJ

The downfall under the influence of a highly bearish resistance trendline dropped the ENJ prices by 50% over the last month. Finally, the buyers overtook the train control at $0.40, forming a support landline. Hence the price action creates a symmetrical triangle pattern in the daily chart with the 50-day SMA moving along with the resistance trendline. TradingView Chart Source- Tradingview

ENJ Technical Analysis 

ENJ price Action showcases a bullish retracement within the symmetrical triangle and a rise in the trading volume. However, the higher price reaction in the daily candle opposes the bullish growth increasing the chances of a bearish fallout. The MACD indicator Showcases a bullish trend of the fast and slow lines avoiding multiple crossover events. Hence the indicator showcases a bullish trend in motion, increasing the likelihood of a bullish breakout. The RSI indicator Showcases surrounding reversal in the nearly oversold zone resulting in a jump over the 14-day average line and the halfway line. However, this line showcases a slight bearish divergence in the last two peak formations at the resistance trend line and warns of a retracement to the support trendline. Hence the technical indicators maintain a bullish trend in motion, but the growing bearish influence may trigger another resonance within the triangle pattern. In a nutshell, the ENJ price analysis suggests the traders wait for the price action confirmation before taking a bullish trade.

Upcoming Trend

ENJ buyers can expect the prices to break above the 50-day SMA resulting in the triangle breakout. The breakout rally shows the potential to reach the 100-day SMA at $0.80. Resistance Levels: $0.57 and $0.80 Support Levels: $0.50 and $0.40

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