Enjin Coin price reverses momentarily after a massive bull run
- Enjin Coin price drifting lower in a descending channel.
- A 390% gain in March could continue into month-end.
- But for now, it seems like ENJ could retrace as it hovers in overbought territory.
Enjin Coin price has rallied over 2,800% since the January low and closed nine of the past ten weeks generating substantial gains. The weekly Relative Strength Index (RSI) hit 97 recently, suggesting that ENJ is highly overbought.
Enjin Coin price correction not over yet
Enjin Coin has been correcting over the last three hours after stalling above the high printed earlier in the day at $3.02. The drift lower has shaped a declining channel, with the topside trendline showing resistance at $2.93 on the 10-minute chart.
The lower half of the channel intersects with the 100 and 200 ten-minute simple moving averages (SMA), creating an additional line of support for any further weakness in Enjin Coin price.
The most recent bounce did stall at the channel’s middle trendline, indicating that more weakness is still possible in the short-term.
As long as the lower trendline holds around $2.73, it is projected that ENJ price will overcome the earlier breakout highs and target the 1.382 extension line at $3.24, followed by the 1.618 extension level at $3.37.
ENJ/USD 10-minute chart
Nonetheless, if ENJ price breaks below the channel’s lower edge, the price will fall quickly to $2.46 before discovering support.
Author
Sheldon McIntyre, CMT
Independent Analyst
Sheldon has 24 years of investment experience holding various positions in companies based in the United States and Chile. His core competencies include BRIC and G-10 equity markets, swing and position trading and technical analysis.
