ENJ Technical Analysis: Abrupt Bullish Failure Forms A Bear Triangle
The ENJ coin price action forms a descending triangle pattern with the recent bullish failure to surpass $2, resulting in a lower high formation. However, the bulls regain momentum as the price takes support near the $1.6 horizontal level. Will the Enjin coin price give a bullish breakout?
Key technical points:
Past Performance of ENJ
With the market leader Bitcoin falling almost 8% last day, the altcoins share the same fate resulting in an abrupt reversal of the bull cycle. However, the ENJ coin price finds support near the $1.6 mark after a 10% fall last day, resulting in a substantial bearish candle.
Currently, the Enjin token exchanges hands at $1.78 with a rise of 7% in the trading volume, indicating a rise in selling pressure evident by a recent bear candle.
Source-Tradingview
ENJ Technical Analysis
The ENJ coin price action forms a descending triangle pattern with the recent formation of a lower high formation. However, the support near the $1.6 results in a bullish retracement to the resistance trendline.
The falling movement of the crucial 50,100, and 200-day EMAs maintain a bearish alignment in the ENJ/USD daily chart. Hence, traders can expect the EMAs to provide dynamic resistance to keep the bullish growth in check.
The RSI Indicator slope shows a slight bullish divergence in the last two dips on the $1.6 level. Therefore, despite being below the 50% mark, the indicator reflects the possibility of the trendline breakout.
The MACD indicator projects a merger of the MACD and signal lines in the daily chart that may shortly result in a bearish crossover. Moreover, the falling histogram distribution of the bull cycle represents the resurfacing bears.
In short, the technical indicators indicate that the increasing selling pressure is pressurizing the underlying bulls.
Upcoming Trend
The ENJ coin price shows the bulls getting cornered on the ropes as the sudden 10% reversal creates a bearish candle resulting in a descending triangle pattern. However, the possibility of a bullish reversal is considerable, as showcased by the RSI indicator.
Support Levels: $2.80 and $2.40
Resistance Levels: $3.60 and $4