Enjin Coin Leading The Pack With Double Digit Daily Increases

The increase might not have happened by chance, either. Enjin recently secured a partnership with Microsoft Azure, which uses its technology to create Azure Heroes. Azure Heroes is a recognition program in which valuable contributors are rewarded with badges. The badges will be created with unique designs and tokenized into a digital asset. Enjin Coin has been on the watch list for many cryptocurrency traders, such as @imbagsy, who recently stated that ENJ is one of the coins to keep an eye on since it might have already begun its new market cycle.

$ENJ update:

+61% 🔥 pic.twitter.com/rUhUYNn4gZ

— Bagsy (@imBagsy) December 5, 2019

Since the tweet, ENJ rallied by more than 50% in a single day. How long will the rally continue? Continue reading below if you are interested in finding out.

Enjin Historical Bottom

The ENJ price has historically reacted very well to the 600 satoshi support area. It found support there in the latter half of the 2018 correction, before beginning the upward move that led to the all-time high of 6,391 satoshis in March 2019. Afterward, the price initiated a correction and reached the support area again in August. After consolidating for roughly three months, the price has begun another upward move. Technical indicators show several similarities between the two movements. The price created a double-bottom each time, combined with an RSI value near 35. Between the two bottoms, a bullish cross on the weekly MACD transpired. In the 2018 movement, it took 196 days from the low for the next market cycle to begin. If the current movement transpires in the same amount of time, the next market cycle should begin around February 19, 2020.

Current Price Action

ENJ moved above the 100-day moving average (MA) in November and consolidated above it. Afterward, it broke out above the 200-day MA. Currently, it is trading inside the 1,250 satoshi resistance area which coincides with the 0.5 fib level. It reached the 0.618 fib level before creating a long upper-wick and decreasing. While it is possible that the price continues upward, it seems unlikely. Rather, it is more probable that the price fails on its current breakout attempt and decreases until it finds support somewhere above the 200-day MA at 100 satoshis. Afterward, it seems most probable that the price will consolidate prior to making another attempt at breaking out. To conclude, the ENJ price has given a signal in anticipation of the start of the new market cycle. However, a retracement period is likely before the price continues to new highs.

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Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.