Enjin Coin price crossed key resistance: is it a good buy?
- Enjin Coin price jumped above the key resistance at $0.5196.
- It has moved to the third phase of Elliot Wave.
- ENJ is also being supported by moving averages.
Follow Invezz on Telegram, Twitter, and Google News for instant updates >
Enjin coin price went parabolic on Thursday as cryptocurrencies staged a strong comeback despite the rising interest rate hikes bets. ENJ jumped to a high of $0.5650, the highest point since August last year. It has jumped by more than 147% from its lowest point in 2022. So, will the coin maintain its bullish trend?
Enjin coin price prediction
On the daily chart, we see that Enjin (ENJ/USD) price jumped to a high of $0.5300 on Sunday as Bitcoin surged to $25,200. It then formed pulled back ahead of the FOMC minutes that came out on Wednesday. Enjin has now spiked above the initial resistance level at $0.5196, which was the highest point on October 9, 2022. It has invalidated a double-top pattern that was forming.
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
At the same time, Enjin’s bullish move is also being supported by the 25-day and 50-day moving averages. It has remained above the two averages since the first week of January of this year. Further, Enjin has successfully moved above the 61.8% Fibonacci Retracement level while the Relative Strength Index (RSI) has moved close to the overbought level.
Enjin is also moving to the third phase of the Elliot wave pattern. In this analysis, the third wave is usually the longest one. Therefore, after invalidating the double-top pattern whose neckline was at $0.4186 and moving into the third phase of the Elliot Wave, Enjin will likely continue rising in the near term. If this happens, the next key level to watch will be at $0.70, which is about 25% above the current level.
Turning to the four-hour chart, we see that the ENJ/USD price has been in a strong bullish trend in the past few days. After crashing to a low of $0.4716 on Wednesday, it made a strong rebound as investors bought the dip. As I wrote in this Cardano article, this rebound was because of selling the rumour, buying the news.
Enjin is being supported by the 25-day and 50-day moving averages and the Supertrend indicator. Most importantly, it has jumped to the second resistance of the Woodie pivot point. Therefore, Enjin will likely continue rising as buyers target the next third resistance of this pivot point at $0.628, which is about 11% above the current level. A drop below the support at $0.5291 will invalidate the bullish view.