NFT Coins Work Towards Reversal, After Sizeable Bounces

Decentraland (MANA) has bounced at a long-term Fib support level but is still following a short-term descending resistance line.

Chiliz (CHZ) is trading inside a sizeable descending parallel channel, in what is likely a corrective structure.

Enjin coin (ENJ) has been following a descending resistance line since reaching an all-time high price, on April 9.

MANA

MANA has been moving downwards since reaching a high of $1.67, on April 17. The decrease intensified, after the token created a lower high, on May 11. 

On May 23, MANA fell to a low of $0.483. However, it created a bullish engulfing candlestick the next day and has been moving upwards since. 

Furthermore, the bounce caused a reclaim of the $0.66 area, which is the 0.618 Fib retracement support level when measuring the entire upward movement. 

Technical indicators are still bearish, but the MACD has generated one higher momentum bar, a potential bullish reversal sign.

The shorter-term two-hour chart shows that the token has been following a descending resistance line since May 11. 

Until it breaks out from this line, we cannot consider the trend bullish.

Unlike the daily time-frame, technical indicators in the six-hour time-frame are bullish. This is especially evident by the RSI cross above 50 and positive MACD (green icons).

Highlights

• MANA has bounced at the $0.66 support area.
• It is following a descending resistance line.

CHZ

CHZ has been decreasing inside a sizeable descending parallel channel since reaching an all-time high price on March 12. Such channels often contain corrective movements. 

Since creating a lower high and begin rejected on April 16, the token has been trading in the lower half of this structure. 

It reached the support line of the channel on May 19, and similarly to MANA, it reached another low on May 23. However, it has been moving upwards since. 

In addition, the RSI has generated bullish divergence and the MACD has generated several higher momentum bars. If CHZ were to reclaim the middle of the channel near $0.45, it would confirm that the correction has ended.

Highlights

• CHZ is trading inside a descending parallel channel. 
• Technical indicators are showing some bullish signs.

ENJ

ENJ has been decreasing since reaching an all-time high price of $4 on April 9. Throughout the decrease, it has been following a descending resistance line. 

Similarly to MANA, it bounced on May 23 and created a bullish engulfing candlestick the next day.

Technical indicators are showing some bullish reversal signs. This is especially evident in the bullish divergence created in the RSI. In addition, the MACD has generated three higher momentum bars.

If ENJ were to move above the April 23 low at $1.68 (red line) it would confirm that the decrease is an A-B-C corrective structure, instead of a bearish impulse.

Highlights

• ENJ is following a descending resistance line.
• It bounced at the $0.96 support area.

For BeInCrypto’s latest bitcoin (BTC) analysis, click here.