The Enjin Coin price rally has reversed hard in the last 24-hours. But does it spell Enjin trouble, or will the ENJ soon resume its march higher?
Enjin Coin (ENJ) is trading at $1.2543, down 2.50% this morning and almost 30% below yesterday’s $1.5903 high.
What happened? The cryptocurrency market made great strides on the upside yesterday after a report released over the weekend appeared to confirm retail giant Amazon (NASDAQ: AMZN) would soon accept crypto payments.
The news sent many digital assets higher, and for a moment, Bitcoin looked sure to reclaim the elusive $40,000 threshold.
Unfortunately, the online marketplace behemoth has since outright denied the claims made by financial newspaper City AM.
“Notwithstanding our interest in the space, the speculation that has ensued around our specific plans for cryptocurrencies is not true,”
Consequently, BTC has dropped considerably and dragged much of the market lower with it. As a result, ENJ has reversed yesterday’s positive technical advances. Furthermore, if weakness persists in the broader market, the Enjin Coin price could head back towards $1.0000.
ENJ price forecast
The daily chart shows ENJ has been trading within the confines of a long-term narrowing triangle pattern.
The lower supportive trend is seen at $0.9450 and was the catalyst for the 73% bounce from the 20th of July low at $0.9962. Therefore, I would consider this a major support level.
Conversely, a descending trend from April currently caps the price at $1.4250. Furthermore, the 200-day moving average at $1.4657 and the 100-day average at $1.5935 reinforce the robust resistance above the price.
Notably, yesterday’s climb lifted the Enjin Coin price above the 200 DMA and out of the trend. However, the rally reversed at the 100 DMA, forcing ENJ below the 200-day average and crucially beneath the trend line.
This morning, ENJ is finding support at the 50 DMA at $1.2046. However, a failure to maintain this level could force the price lower to the major support at $0.9450.
However, if the price manages to advance beyond $1.5937, the bulls will be back in the driving seat. And in this event, an achievable upside target becomes the 26th of May high at $2.1626.