- Enjin Coin price is trading around the middle line of the parallel channel.
- A surge in buying pressure could surge ENJ 15% toward the upper trend line at $2.65.
- If sellers manage to pierce through the 50 and 100 SMA, it will lead to a 15% downtrend to $2.06
The Enjin Coin price awaits a clear to establish as buyers and sellers fight to take control.
Enjin Coin price lacks buyers’ conviction
The Enjin Coin price is stuck trading between two stable barriers creating equal highs and lows. A flat parallel channel is formed when the swing highs and series of lows are connected using trend lines.
Since this pattern has no bias, a breakout will be crucial in setting up a clear trend. Therefore, a breach of the upper trend line at $2.65 will signal the start of a new uptrend. However, if the demand barrier at $1.99 is shattered, a downswing will ensue.
At the time of writing, the Enjin Coin price seems to be supported by a confluence of the 100 Simple Moving Average (SMA) at $2.32, and the SuperTrend indicator’s buy signal spawned on March 24.
Thus, a bounce from this level could result in a 15% upswing toward the upper trend line or the State Trend Resistance at $2.65 set up by the Momentum Reversal Indicator (MRI).
If such a move were to happen, the $3.60 target for ENJ is determined by adding the channel’s height, 35%, to the breakout point at $2.65.
ENJ/USDT 6-hour chart
Supporting the bullish outlooks is the addition of four new whales to the ENJ network since April 3 who have joined 395 other investors that hold 100,000 to 1,000,000 ENJ tokens. This increase affirms a positive outlook for the Enjin Coin price.
Enjin Coin whale holder distribution chart
The declining exchange deposits combined with the surging daily active addresses further confirm increased adoption and reduced selling pressure for Enjin Coin.
The number of daily active addresses has grown by 35% since March 26 to where it currently stands, 2654. This spike imitates retail investors' interest in the asset at the current price levels.
Enjin Coin daily active deposits and daily active addresses
Despite the bullish momentum, if sellers prevent the Enjin Coin price from growing beyond the upper trend line, a reversal could be underway. Additionally, if the sellers slice the flat channel’s middle line, ENJ could collapse 15% toward the demand barrier at $2.60, coinciding with the 61.8% Fibonacci retracement level.
However, a spike in bearish momentum that causes a breakdown of the lower channel at $1.99 could result in an 8% crash toward the 50% Fibonacci retracement level. This descent could extend to $1.61, which is the 38.2% Fibonacci retracement level.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.