Enjin Coin price shows a swift retracement
after the Coinbase listing announcement. However, this move might lead to another explosive
rally. Enjin Coin price was forming a bull flag pattern
even before the Coinbase listing announcement. This technical formation is made up of two
distinctive moves, an initial burst followed by a consolidation. ENJ’s 150% upswing from March 6 to March
16 formed the flag pole, while the series of lower highs and lower lows that ensued
resulted in a flag. This setup forecasts a 60% upswing, which
is the flag pole’s height added to the breakout point. On April 7, the altcoin breached the flag’s
upper trend line, resulting in a 48% upswing to $3.66. Although the target was in sight, a surge
in profit-taking resulted in a 17% retracement to where ENJ is currently trading. Now, a range-bound move might inspire accumulation
among investors, which could result in a 40% upswing to $3.93. A confirmation of this bull rally will arrive
after a decisive close above the immediate breakout line presented by the Momentum Reversal
Indicator (MRI) at $3.15.
Favoring the bullish thesis is IntoTheBlock’s
In/Out of the Money Around Price (IOMAP) model, which shows that roughly 4,600 addresses purchased
nearly 132 million ENJ tokens between $3.02 and $2.70. Likewise, underwater investors are present
from $3.13 to $3.28, promoting the range-bound movement as mentioned above. Additionally, supporting a move higher is
a 4.4% drop in the ENJ held by exchanges. This reduction from 42.3% to 40.2% suggests
that short-term sellers might be done selling, which further promotes the accumulation and
a move higher as mentioned earlier. If the sellers breach the demand barrier at
$2.46, a bearish picture might come into play.
In such a case, a 6% pullback to $2.31 seems
likely. A breakdown of this barrier could further
push Enjin Coin price by another 6% to $2.17..