By Nathan Ferguson
Enjin Coin sustained bullishness in March’s second half, but the latest downswing witnessed a massive retracement. Can the alternative token recover from the lows? Lower timeframe charts like 1hr depict bearishness for ENJ.
The alt broke beneath the $1.7 area, and the massive resistance band between $1.75 and $1.6 awaits the token amid potential upward moves. Messari data shows the ENJ didn’t exhibit high trading volumes during the drop to $1.5. But the subsequent bounce over the past few days saw massive trading volume.
ENJ – 1Hr Chart
The surge in trading volume might reflect market players buying ENJ dip. However, why are the participants purchasing the dip? Remember, the hourly chart shows Enjin Coin’s market structure showed bears’ dominance over the past few days. The narrative changed when the token climbed beyond $1.69 and briefly touched levels beyond the resistance floor at $1.75.
Higher timeframes showed ENJ on bullish actions during early sessions in March when the alt overcame the previous downside’s lower peak around $1.53. This region has seen massive demand arriving over the past few days.
Analysts plotted Fibonacci retracement zones according to the token’s move to $1.97 from $1.27. ENJ witnessed some demand near 61.8% retracement area at $1.54 and the support of around $1.47.
The red box between $1.75 and $1.85 stayed as massive resistance. Moreover, the $1.75 to $1.8 range is a bearish order block.
Reasoning
The Relative Strength Index rose above the neutral 50 over the past couple of days, whereas the Awesome Oscillator stayed beyond the zero line. That indicated the momentum leaning towards bulls, but it wasn’t massively bullish yet. Furthermore, the CVD remained green (at the same timeframe), suggesting buying momentum behind the ENJ rally.
Final Thought
Enjin Coin bulls should battle a massive resistance beyond the $1.75 mark. The momentum remained bullish and steady demand accompanied the rally. However, market players should be cautious since an action beyond $1.75 and retesting the level as demand might be less risky than buying the alt below the resistance of 1.75.