Enjin Coin Price Forecast: ENJ could trigger 20% correction if this key level fails
- Enjin Coin price shows that its 90% uptrend after a late February breakout is under threat.
- Failure from ENJ bulls to make a comeback could lead to a 20% correction to $0.386.
- A decisive flip of the $0.696 resistance level into a support floor will invalidate the bearish outlook.
Enjin (ENJ) price sits atop a key barrier that will decide where ENJ will go next. A breakdown could lead to a double-digit correction, but a bounce here could trigger an even bigger rally.
Also read: Arbitrum Arcade launch could fuel narrative for crypto gaming tokens
Enjin Coin price at pivotal point
Enjin Coin price trigged a 94% ascent after it breached the declining trendline in late February. This move caused ENJ to pierce the $0.386 and $0.486 hurdles and set up a local top at $0.687. However, the profit-taking or exhaustion caused the altcoin to shed 27% from the top, and it currently trades at $0.499.
Going forward, investors can expect Enjin Coin price to break down the 0.486 support level and retrace lower. This move will allow the Relative Strength Index (RSI) to reset around the 50 mean level. The weekly imbalance, extending from $0.365 to $0.434, will be a key zone to accumulate ENJ.
However, for the long-term outlook to remain bullish, the Enjin Coin price needs to hold above the $0.386 support level. A breakdown of this level could attract breakout traders and holders to sell their stack, adding selling pressure to the ensuing correction.
Also read: Gaming tokens surge, in spillover effect from Bitcoin price rally: GALA, SAND, ENJ, BEAM, APE
ENJ/USDT 1-week chart
While the short-term correction thesis is logical, Bitcoin’s (BTC) slightly bearish leaning bias helps Enjin Coin price in its journey to the key support level. However, if BTC manages to overcome the lack of volatility and kickstart its ascent, then Enjin Coin price could bounce off the $0.486 support level and restart its ascent.
In such a case, Enjin Coin price could rally roughly 42% and tag the next critical resistance level at $0.698. A clean flip of this level will invalidate the potential bearish outlook for ENJ and open the path up to the $0.914 level, roughly 35% away from $0.698.
Read more: Avalanche price could rise 20% on gaming narrative ahead of GDC conference
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Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
