Enjin Coin (ENJ) is showing decisive signs of a bullish reversal but has yet to break out from its short-term structure.
ENJ has been falling since reaching an all-time high of $4.84 on Nov 25. The downward movement continued until the price reached a low of $1.15 on Feb 24.
ENJ has been moving upwards since. On March 14, it broke out from a descending wedge. The descending wedge is considered a bullish pattern, meaning that it leads to breakouts the majority of the time.
If the upward movement continues, the closest resistances would be at $2.57 and $3 respectively. These are the 0.382 and 0.5 Fib retracement resistance levels respectively.
Future movement
Technical indicators on the daily time frame support the continuation of the upward movement.
Prior to the breakout, both the RSI and MACD generated significant bullish divergences (green lines). Such divergences often precede bullish trend reversals.
Since then, the RSI has moved above 50 and the MACD has nearly crossed into positive territory. Both of these are considered signs of bullish trends.
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