Crypto nugget: Enjin (ENJ), the witness to a loss of interest in gaming?

In this new crypto nugget on Wednesday, let’s take a look at ENJ, the token of Enjin, a decentralized platform focused on gaming. The goal of the ecosystem is to bring together the creation, distribution and preservation of digital assets. This operation is mainly used for video games, but the platform can also be used to set up a reward system for corporate clients. For example, Microsoft, Samsung or BMW are on their way. While the challenges for the team are ambitious, is the ENJ asset doing well in the markets? Let’s go to TradingView to try and see something more clearly.

This analysis of the ENJ is presented to you in collaboration with the Coin Trading and Its Algorithmic Trading Solution finally accessible to private individuals

An imminent return to the 2019-2020 range?

Price in ENJ against the dollar on a weekly scale (1W)

After hitting a record high (ATH) of $4.84, ENJ, like the rest of the market, entered a strong downtrend. You can see it quite easily with the LH formation (lower high) and LL (Lower Low) sequentially. In order to have a downtrend, it is essential to have bearish lows and highs. Moreover, ENJ broke one of its downsides by closing below the $1.15 level. Consequently, there was an acceleration in the downward trend.

But what can we expect weekly for ENJ? The most optimistic scenario would be a return of support with a close above $1.15. So we can have an attempted reversal with a buying force. However, this is not the preferred scenario in the current state of the course. Since we are in a downtrend, we have to assume that we will see the continuity of falling peaks and troughs.

What would be the next price targets in this regard?

  • A return to the 0.34/0.40 dollar zone, a technical zone to keep in mind. ENJ could probably react at this level with a new low.
  • As part of a continuation of the trend, a return to the top of the 2019-2020 range at $0.21.
  • Upon reintegration of the range in the coming months, a return to $ 0.11.

Now let’s move on to the day-to-day to understand ENJ’s recent movements as best we can.

ENJ in compression, beware of volatility!

Daily exchange rate of ENJ against the dollar
Price in ENJ against the dollar on a daily scale (1D)

Here we are on a smaller unit of time, allowing us to better understand the decline that has taken place over the past few weeks. You can see the loss of support was followed by a to withdraw (retracement to the relevant technical level) with a Lower High, confirming the bearish breakout and continuity of the trend. As of now, the price is in a very tight range between $0.77 and $0.62 with rising lows and falling highs within. Sooner or later, a breakout powerful enough to retrend the price will occur.

The market environment leaves us with uncertainty, especially as on this FOMC (Federal Open Market Committee meeting of the US Fed) day, a statement could surprise investors and exaggerate the market. In case of loss of $0.62, ENJ will start another downtrend. As part of this, it will most likely revisit the liquidation fuse low or even the first weekly zone at $0.34/$0.40.

On the other hand, a breach of USD 0.77 will cause ENJ to start bullish momentum in the very near term. So we have two goals to keep in mind that ENJ will likely return to:

  • The Fair Value Gap To Be Filled To $0.934
  • A return to the Supply Zone where the price could come to a pit, at least $1.06

Here we are at the end of the ENJ token analysis. For now, we are in a moment of uncertainty in which the market could explode upwards, but also downwards. So it will be necessary to follow the exit from the current range in order to enter the market with a new trend a little more clearly. Whether you are bullish in the near term or bearish as part of a continuation from recent weeks, be prepared for turbulence this week.

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