As the cryptocurrency complex gets a bid today, the Enjin Coin price is being rejected at a small resistance level, fueling optimism that June 22 was the final blow for the significant correction. As the result, the failure at minor resistance indicates that ENJ interest is low. Therefore, it will be difficult to construct a rally to the 200-day SMA or higher, limiting upside potential in the immediate term.
Enjin Coin: Rise and fall
In April-May, the Enjin Coin price correction bottomed out below the 78.6 percent retracement of the 2021 rise. This results in an 80% drop to $0.72 on May 23. However, it continues to be a severe blow to the blockchain-based gaming ecosystem. Furthermore, ENJ struggles to gain price traction that will allow it to break through minor and large resistance levels placed on the daily chart.
Enjin Coin’s price attempted to surpass the June 8 low of $1.14 today and on June 25. However, failed both times. If this level is proving difficult, it does not inspire confidence in ENJ’s ability to challenge the chart’s more serious technical levels.
The 200-day SMA at $1.31. The April declining trend line and the 50-day SMA at $1.42. This will all be in play if the Enjin Coin price closes above $1.14. Based on the present position of the moving average, hitting the 50-day SMA would result in a 25% gain for ENJ.
As the daily Ichimoku Cloud hovers above the indicated levels, the Enjin Coin price will struggle to prolong the climb. Furthermore, the coming Death Cross, which occurs when the 50-day SMA crosses below the 200-day SMA, is on the verge of triggering, putting additional downward pressure on ENJ.
Price Prediction
ENJ investors should analyze whether the price of Enjin Coin is creating the second high of a minor double top formation. This is based on the current price action. A decline below the double top trigger at $0.87 would signal the end of the corrective rebound and Enjin Coin would be on track to return to its June 22 low of $0.76. If the June 22 low is not held. The May 23 low of $0.72 is likely to be swept.
Into the IOMAP indicator supports the notion that today is the high of the corrective rebound. From $1.21 to $1.24, it reveals a large cluster of resistance (out-of-the-money addresses). It has 88 addresses owning 41.19 million ENJ at an average price of $1.23.
The group is smack dab in the center of the line connecting the June 8 low and the 200-day SMA. As a result, this poses a severe challenge for optimistic ENJ investors.
In addition, the chart provides marginal support (in the money addresses) below the current price of $0.92. Furthermore, making the negative ENJ investors’ path easier going ahead.
The daily active addresses and new addresses on the site are another pessimistic observation. They may be bottoming out. However, they’re still much below the level at which ENJ’s user engagement and growth would be meaningfully boosted.
Conclusion
At this time, it appears that the Enjin Coin price lacks the conviction and impetus. It needs both to overcome the IOMAP’s indicated cluster of resistance at $1.14. If both goals are met, ENJ may have the staying strength to hit the 200-day SMA. Therefore, marking a 15% gain from the important resistance level of $1.14. Moreover. any further rising movement should be halted by the impending Death Cross.
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