ENS Technical Analysis: Buying Spree Shoots Prices Above 200 DEMA
Despite a 10% drop on 8th October, the ENS prices shot up by 24% in the last three days, creating a streak of bullish candles. With a 13% jump yesterday, a bullish engulfing candle sabotages the drop of 8th October and projects a high likelihood of an uptrend to the $23 mark.
Key Points:
Source-Tradingview
ENS Technical Analysis
From mid-September, the ENS price action has maintained an uptrend accounting for a 55% Jump last month. However, the recent drop of 10%, creating a bearish candle breaking below the 200-day EMA, threatened a trend reversal.
Nonetheless, over the last three days, the market value has increased by 25%, breaking about the 50% Fibonacci level and reclaiming the 200 DEMA. Additionally, the spike in the intraday trading volume supports the bullish engulfing candle formed yesterday, accounting for a 13% jump reflecting an increasing buying pressure.
On deeper price action analysis, the bull run comes as the post-reversal rally of the double bottom breakout. So if the buying pressure sustains, the bullish rally will reach the overhead resistance of 78.60% Fibonacci level at $22.90.
The ENS price currently trades at $19.6, with an intraday gain of 1.25% and 17 hours left on the clock. However, the higher price rejection in the daily candles warns of a retracement to test the golden crossover.
Therefore, if the buyers fail to sustain the uptrend, the price may witness a minor relief rally to the 200-day EMA.
Technical Indicator
The RSI indicator shows a sharp jump approaching the overbought boundary, undermining the previous bearish divergence. This development suggests a higher possibility for a recovery rally. Moreover, the bearish crossover avoided between the fast and slow lines offers additional confirmation for the established uptrend.
Therefore, the ENS technical analysis suggests that overall sentiment is bullish and might reach the $23 mark shortly.
Resistance levels- $20 and $23
Support levels- $18 and $17