Twitter analyst and trader @lomahcrypto noted the recent increase by the ENJ price and outlined a possible inverse head and shoulders, which is considered a bullish pattern.In the spirit of their mission to empower #developers of all backgrounds, Microsoft's #AzureHeroes program aims to inspire devs to learn, coach, and build on @Azure and promote a healthy, inclusive community via #blockchain technology.
— Enjin (@enjin) December 6, 2019
Learn more: https://t.co/L1N24ujkKe pic.twitter.com/tPa55QT4eL
However, he suggested that he will close the majority of his position, in case the price revisits its recent highs. Will the price do so? Continue reading below if you are interested in finding out.$ENJ +10%
— Loma (@LomahCrypto) December 13, 2019
Will close most of this position if we get another retest of the highs. pic.twitter.com/wAhhH7Vl1i
Long-Term ENJ Bottom
The 600 satoshi support area has been historically significant for the ENJ price. After the initial upward movement of 2017, the price initiated a six-month-long correction until it reached the support area. The Enjin Coin price bounced on this area twice on August and November 2019, before initiating a very strong upward move. After the ensuing correction, the price again reached this area in August and October 2019.
Price Breakout
The ENJ price reached a low of 510 satoshis on August 9. It gradually increased over the next few months, before breaking out of the 800 satoshis resistance area on December 4. The breakout transpired with extremely significant volume, possibly indicating that it was the beginning of a new market cycle. The rally ended once the price reached 1466 satoshis, coinciding with the 0.618 Fib level of the previous upward move. Afterward, the price retraced and almost retested the previous resistance area.
Inverse Head and Shoulders
Since reaching the aforementioned high, the ENJ price is, possibly, in the process of completing the right shoulder of an inverse head and shoulders (H&S) pattern. The head was created at the 0.786 Fib level, making it a suitable place to end the retracement. The possible increase is supported by positive news — since the ENJ/USD pair went live today on the Binance exchange.A breakout the full height of the pattern would take the price near the highs of 1500 satoshis, making it a likely resistance area and increasing the possibility that the price makes a double top. This gives validity to the claim in the tweet in which “the majority of the positions will be closed if we revisit the highs.”We're live! Trading for ENJ/USD is now available on @BinanceAmerica.
— Enjin (@enjin) December 13, 2019
👉 https://t.co/40NAtmNSYO$ENJ #EnjinCoin #ENJ #Binance pic.twitter.com/3ZWrbzKegO
To conclude, the ENJ price recently initiated a very strong upward move which could have been the beginning of a new market cycle. It is currently completing an inverse H&S pattern which could take it to 1500 satoshis.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
