- 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
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.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.