Enjin Coin retreat has held steady following
the breakdown from the all-time high of $3.12. Several tentative support levels failed to
hold, leaving ENJ firmly in the hands of the bears. In the meantime, the breakdown is in progress,
with Enjin Coin downswing targeting losses toward the major support at $1.4. Enjin Coin's upward movement has been capped
under the descending trend line. The support levels that have already been
lost include the 50 Simple Moving Average (SMA) on the 4-hour chart, $2.5, and most
recently, the 100 SMA.
At the moment, Enjin Coin is trading at $2
amid calls for the bearish leg to stretch further down. The Moving Average Convergence Divergence
(MACD) indicator cements the bears' influence over the price. Currently, the MACD line (blue) is holding
under the signal line, reinforcing the bearish outlook. The 4-hour Parabolic SAR indicator has also
flipped bearish at the time of writing. This indicator is currently above the price,
implying that it was time to short Enjin Coin.
As long as the parabolas (dots) stay above
the price, we will likely experience a breakdown heading to $1.4. The bearish outlook has been confirmed by
the Relative Strength Index (RSI) on the 4-hour chart, as it dives into the oversold area. Enjin Coin is sitting on areas with immense
support, as shown by IntoTheBlock's IOMAP on-chain metric. The model reveals the most robust support
between $1.85 and $1.92.
Here, 80 addresses bought roughly 16.8 million
ENJ. Trading under this zone would be a farfetched
idea for ENJ, thus invalidating the downswing. On the upside, the path is relatively smooth
apart from the buyer congestion between $2.28 and $2.34. Here, nearly 1,900 addresses had previously
purchased 13.5 million ENJ. If buyers build enough pressure to overcome
this hurdle, Enjin Coin may resume the uptrend to a new all-time high..