Enjin Coin (ENJ) Attempts To Break Out Above Resistance

Enjin Coin (ENJ) Price Highlights

• ENJ is following an ascending support line.
• There is support at 1,200 satoshis.
• There is resistance at 1,450 and 1,800 satoshis.
• A golden cross has transpired.

Full-time crypto trader @J0hnnyw00 tweeted a chart showing ENJ making an attempt at breaking out and stated that he believes that if ENJ breaks out above its 100-week moving average (MA), it will fly towards new highs.

Break 100MA (1479) in the weekly chart and we'll fly. $ENJ pic.twitter.com/yhNMwBpT7H

— Johnny Woo (@j0hnnyw00) February 17, 2020

Long-Term Outlook

The ENJ price consolidated between 550-1,200 satoshis in a period of 245 days between June 2018 and February 2019. Afterwards, the price broke out and greatly accelerated its rate of increase. The price has also been consolidating inside this same area since July 2019. The price broke out on Feb 4, validating the 1,200 area as support but has yet to really take off. This movement has transpired over 238 days. The weekly RSI shows an interesting pattern. The price made a failed breakout attempt above 1,200 satoshis in December 2018, which was combined with an RSI value above 50. The next attempt at breaking out was successful. Similarly, the price made a failed breakout attempt in December 2019, which was combined with a weekly RSI value above 50. The next breakout attempt was also successful. So, the movements are identical, except for the fact that the rate of acceleration greatly increased after the first breakout in 2018. However, there is one more week left in order for the movements to have the same length, so the second move could still be of identical length, except for the fact that the price validated the resistance area as support before breaking out. In order for that to occur, the price has to move towards the resistance area of 2,900 satoshis next week.

Ascending Support Line

In the shorter-term, we can see that the ENJ price has been following an ascending support line since Aug 9, 2019. The price bounced on this support line for the final time on Jan 19, 2020. The closest resistance areas are found at 1,450 and 1,800 satoshis, with the price currently being inside the former. While it has moved above it several times, the higher prices could not be sustained and the price has created two very long upper wicks instead. The daily chart shows that a bullish cross has transpired between the 50 and 200-day moving averages (MA). Also, the price bounce of Feb 17 was combined with an RSI bounce at the 50-line, a bullish sign. The bullish candlestick transpired with considerable volume, solidifying the strength of the movement.

ENJ Future Movement

The most likely future movement would be a breakout towards the next resistance area at 1,800 satoshis. A breakout above this area would indicate that the fractal from early 2019 is in place and ENJ will set its sights on 2,900 satoshis. To conclude, the ENJ price is trading inside a significant resistance area. It will likely be successful in breaking out and should then reach at least one of the resistance areas outlined above.