The price of Enjin Coin is battling short-term resistance established by the June 8 low.
As the 50-day simple moving average (SMA) approaches the 200-day SMA, the bearish Death Cross pattern is nearing completion.
ENJ’s descending trend line from April’s high will act as a deterrent to the rally’s transition from a corrective bounce to a new uptrend.
As the cryptocurrency complex gets a bid today, Enjin Coin price is being rejected at a small resistance level, fueling optimism that June 22 was the final low for the significant correction. The failure at minor resistance indicates that ENJ interest is low, and it will be difficult to construct a rally to the 200-day SMA or higher, limiting upside potential in the immediate term.
The Enjin Coin price correction in April-May bottomed out below the 78.6 percent retracement of the 2021 rise, resulting in an 80% drop to $0.72 on May 23. It was and continues to be a severe blow to the blockchain-based gaming ecosystem, as 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 break through the June 8 low of $1.14 today and on June 25, but failed both times. If this level is proving difficult, it does not inspire confidence that ENJ will be able to challenge the chart’s more serious technical levels.
A good closing above $1.14 will strengthen Enjin Coin’s short-term outlook, putting the 200-day SMA at $1.31, as well as the April declining trend line and the 50-day SMA at $1.42, in the crosshairs. Based on the present position of the moving average, if ENJ does hit the 50-day SMA, it would be a 25% gain.
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.
Daily chart of ENJ/USD
ENJ investors should evaluate the likelihood that the price of Enjin Coin is creating the second high of a minor double top formation based on current price activity. A move below the double top trigger at $0.87 would be the first sign that the corrective bounce is over and Enjin Coin is on the verge of returning to its June 22 low of $0.76. If the June 22 low is not held, a sweep to the May 23 low of $0.72 is likely.
The IntoTheBlock In/Out of the Money Around Price (IOMAP) indicator supports the notion that today is the high of the corrective rebound. There is currently a large cluster of resistance (out of the money addresses) between $1.21 and $1.24, with 88 addresses owning 41.19 million ENJ at an average price of $1.23.
The cluster is smack dab in the center of the line connecting the June 8 low and the 200-day SMA, posing a severe challenge to optimistic ENJ investors.
Furthermore, the chart provides marginal support (in the money addresses) below the current price till $0.92, making the bearish ENJ investors’ path easier in the future.
IntoTheBlock – ENJ IOMAP
The daily active addresses and new addresses on the site are another pessimistic observation. They may be bottoming out, but they’re still much below the level at which ENJ’s user engagement and growth would be meaningfully boosted.
ENJ Active Addresses Every Day – IntoTheBlock
At this time, it appears that the Enjin Coin price lacks the conviction and impetus to overcome the IOMAP’s indicated cluster of resistance at $1.14. ENJ may have the staying strength to reach the 200-day SMA, marking a 15% gain from the crucial resistance level of $1.14, if both counts are successful. Any additional upward movement should be halted by the impending Death Cross.
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