In this new cryptocurrency nugget on Wednesday, we take a look at ENJ, the token of Enjin, a decentralized platform focused on games. The ecosystem’s goal is to bring together the creation, distribution and custody of digital assets. This is primarily used for video games, but the platform can also be used to set up a rewards system for business customers. For example, Microsoft, Samsung or BMW are on their way. While the challenges facing the team are ambitious, is the ENJ asset performing well in the markets? Let’s go to TradingView to try to see a little more clearly.
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An imminent return to the 2019-2020 range?
After an all-time high (ATH) of $ 4.84, ENJ, like the rest of the market, entered a powerful downtrend. You can see this quite easily with the LH training (Lower top) e LL (Lower Low) following. To have a downward trend, it is essential to have depressions and descending peaks. Additionally, ENJ broke one of its bearish supports to close below the $ 1.15 level. As a result, there was an acceleration of the bearish trend.
But then, what can we expect for ENJ on a weekly basis? The most optimistic scenario would be a re-entry of the support with a close above $ 1.15. Therefore, we may have a reversal attempt with a buying force. However, this is not the preferred scenario in the current state of the course. Since we are in a downtrend, we must assume that we will see continuity of descending peaks and troughs.
In this context, what would the next price targets be?
- A return in the $ 0.34 / $ 0.40 zone, a technical zone to keep in mind. ENJ could probably react to this level with a new low.
- As part of a continuation of the trend, a return to the top of the 2019-2020 range at $ 0.21.
- In the event of a reintegration of the range in the coming months, it returns to 0.11 dollars.
Let’s now turn to the newspaper to better understand ENJ’s recent movements.
ENJ in compression, watch out for volatility!
Here we are on a smaller unit of time, which allows us to better understand the decline that has occurred in recent weeks. You can see that the loss of support was followed by a withdraw (retracement on the relative technical level) with a Lower High, which confirmed the bearish breakout and the continuity of the trend. From now on, the price is in a very tight range of $ 0.77 to $ 0.62 with rising lows and descending peaks within it. Sooner or later, a breakout powerful enough will occur to give the price a new trend.
The market environment leaves us uncertain, especially as on this day of the Federal Open Market Committee (US Fed) meeting, a statement could surprise investors and cause an overreaction from the market. On a loss of $ 0.62, ENJ will initiate a new downtrend. As part of this, it will most likely revisit the low point of the settlement wick or even the first weekly zone at $ 0.34 / $ 0.40.
On the other hand, a $ 0.77 breakout will cause ENJ to initiate a very short-term bullish momentum. Therefore, we have two goals to keep in mind that ENJ will likely return to:
- The Fair Value Gap that needs to be filled up to $ 0.934
- A return to the Supply Zone where the price could drop to a minimum, at least $ 1.06
Here we are at the end of the analysis of the ENJ token. For now we are in a moment of uncertainty during which the market could explode to the upside, but also to the downside. It will therefore be necessary to follow the exit from the current range to see a new trend on the market a little more clearly. Whether it is short-term bullish or bearish as part of the continuation of the past few weeks, be prepared for this week’s turmoil.
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