Enjin Coin Reaches Crucial Test at Resistance Level, Facing Sell-Off Risk

Enjin Coin's 90% uptrend faces a crucial test at a key resistance level. Failure to break above could trigger a 20% correction to $0.386, while a decisive flip of $0.696 into support would invalidate the bearish outlook and open the way for a 42% rally to $0.698. The outcome hinges on Bitcoin's price action, with a sustained breakout favoring ENJ's bullish prospects.

Enjin Coin Faces Critical Test at Key Resistance Level

March 10, 2023

Enjin Coin (ENJ), a prominent cryptocurrency in the gaming industry, is poised at a pivotal point that could determine its future trajectory. After a robust 90% uptrend since the end of February, ENJ faces a technical challenge that could lead to a substantial correction or further propel its rally.

Technical Overview:

Enjin Coin's recent surge was driven by a breakout above a declining trendline, clearing key resistance levels at $0.386 and $0.486. However, the rally has encountered resistance at $0.696, which has triggered a pullback of approximately 27%.

Currently, ENJ is trading at $0.499, resting on the critical $0.486 support level. A decisive breakdown below this level could trigger a correction towards $0.386, marking a 20% decline. This would allow the Relative Strength Index (RSI) to reset around the neutral 50 level and provide a potential accumulation zone within the weekly imbalance between $0.365 and $0.434.

Bullish Outlook:

For a sustained bullish outlook, Enjin Coin price must hold above $0.386. A breakdown below this level could trigger a sell-off, amplifying the correction.

Bitcoin's Influence:

The short-term correction scenario is supported by Bitcoin's (BTC) recent bearish tendencies. However, if BTC experiences a significant rally, it could provide tailwinds for ENJ and potentially push it back above the $0.486 support level.

Possible Rebound:

In the event of a bounce off the $0.486 support level, Enjin Coin could embark on a rally of approximately 42%, targeting the next resistance at $0.698. A decisive flip of this level would invalidate the potential bearish outlook and pave the way for further gains towards $0.914.

Conclusion:

The current situation in the Enjin Coin market is critical. A breakdown below $0.486 could lead to a substantial correction, while a bounce off this level could ignite a significant rally. The interplay with Bitcoin's price movements will likely influence the outcome. Traders and investors should closely monitor the price action of ENJ in the coming days to determine its next direction.