Has Enjin Coin Finished Its Correction? [Premium Analysis]

BeInCrypto stated previously that the breakout might have occurred due to a newly announced partnership with Microsoft.The positive announcements have not stopped there, since ENJ also became a part of the PundiX payment network on December 20.

A warm welcome to @enjin #ENJ to join #PundiX payment network 🥳 Now you can use $ENJ to pay for meals, coffee, groceries and more across 25 countries in the world! https://t.co/ewDYl6uKQO #npxs

— Pundi X Labs (@PundiXLabs) December 20, 2019

While the ENJ price has been correcting since December 6, this could be what is needed for another upward push. Crypto trader @lomahcrypto stated that the ENJ price will soon break out and continue the upward movement it began on August 10.

$ENJ

Haven't swing traded in a while but I love the amount of time away from the charts it gives me.

Hardest part is to just not manage the trade at all. Used to be very easy for me but day-trading for months has made it a little bit harder. pic.twitter.com/FDzvt9DL4p

— Loma (@LomahCrypto) December 22, 2019

Will the ENJ price actually break out? And if it does, how high will it go? Keep reading below if you want to find out.

ENJ Trading Range

The ENJ price is currently trading in a range between 550 and 1250 satoshis, a magnitude of 142 percent. The 1250 satoshis area holds a lot of significance, since it has intermittently acted as support and resistance since 2018. It acted as resistance and stopped the current upward move.

Previous Breakout

The ENJ price began an upward move on August 10. It was following an ascending resistance line, until it broke out on December 4. The breakout transpired with very significant volume, suggesting that the move is valid and will likely continue. After the breakout, the price returned to validate the resistance line but only did so in the form of a long lower wick. This suggests that there is significant buying pressure since buyers are entering the market in anticipation of another upward move. Finally, the 100- and 200-day moving averages (MA) are very close to making a bullish cross while the price is trading above both.

Symmetrical Triangle

Since reaching the 1466 satoshi high on December 6, the ENJ price has been following a descending resistance line. If we combine it with the previous line that the price just broke out from, it creates a symmetrical triangle which is slightly irregular. If the ENJ price continues trading inside it, it would be common for the pattern to act as a continuation movement and cause the price to break out again.

Future Movement

If the ENJ price acts as expected, it will continue trading inside this triangle, possibly validating the support line once more before it breaks out. Afterwards, it should increase until it reaches at least one of the the resistance areas at 1500 and 1750 satoshis. Outlining a five wave Elliott formation, the ENJ price has possibly completed the first wave  and is currently on the process of completing 2nd wave, which is corrective. Afterwards, it should continue waves 3-4-5, the last of which will likely be impulsive and get parabolic. The ENJ price should be at a similar point as it was in December 2018, before eventually reaching the all-time high price of 6391 satoshis. To conclude, the ENJ price has finished the first wave of a five wave Elliott formation and is currently in the process of retracing. We think it will eventually break out and continue making new highs.