Ethereum smashes local highs in Japan, Korea – Is a move to $4,500 next?
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice
Enjin Coin has been bullish for the latter half of March, but the recent sell-off saw a deep retracement. Can ENJ recover? The lower timeframe charts such as 1-hour presented a bearish picture. The price has broken below the $1.7 mark, and up ahead is a heavy band of resistance from $1.75 to $1.86. Data from Messari showed that trading volume was not very high when the price dropped toward $1.5, however, the subsequent bounce in the past couple of days has seen very high trading volume.
ENJ- 1 Hour Chart
Source: ENJ/USDT on TradingView
The uptick in trading volume could be representative of market participants buying the dip. But why are they buying the dip? On the hourly chart, the market structure had been bearish in the past couple of days. This changed when ENJ pushed past $1.69 and was also able to briefly poke its nose above the $1.75 resistance level.
Higher timeframes showed that ENJ leaned bullish in early March when it broke the prior downtrend’s lower high at $1.53. In the past couple of days, this area has seen strong demand arrive. Moreover, the Fibonacci retracement levels (yellow) plotted were based on ENJ’s move up from $1.27 to $1.97, and the price did see some demand at the 61.8% retracement level at $1.54 as well as the support level at $1.47.
Just above $1.75, the red box from $1.75-$1.85 is a strong resistance zone, with $1.75-$1.8, in particular, being a bearish order block.
Rationale
Source: ENJ/USDT on TradingView
The RSI climbed above neutral 50 in the past few days, while the Awesome Oscillator also remained above the zero line for the past couple of days. This suggested that momentum leaned toward the bulls, but it was not yet strongly bullish.
The CVD has also been green in the same time period to show buying pressure behind the rally.
Conclusion
There was strong resistance just above $1.75 for Enjin Coin bulls to beat. The momentum was bullish and there was some steady demand behind the rally. Caution was advisable, as a move past $1.75 and its retest as demand could be a less risky buying opportunity than buying it beneath the $1.75 resistance.
