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Revolutionary Insights for ENJ Trading Mastery
Welcome back to another edition of The Crypto City Trading Newsletter, your go-to source for in-depth technical analysis and expert insights into the dynamic world of cryptocurrency trading. Today we are focusing on the Daily chart of ENJ.
Total ENJ Market Cap: $271,517,640
Circulating Supply: 1,663,847,762 ENJ
Total Supply: 1,824,887,208 ENJ
Max Supply: —
This technical analysis provides an in-depth look at theEnjin Coin (ENJ). The analysis focuses on identifying key support and resistance levels, recent price movements, and possible future scenarios. By analyzing these factors, traders will gain insight into the current market condition and make better trading decisions.
A key feature of the chart is a descending trend line that begins from a peak in March 2024, the price is trading under this trend line for approximately 145 days, suggesting that ENJ is currently in a bearish trend. This trend line acts as dynamic resistance, and the price staying below this line signals ongoing bearish momentum.
ENJ is currently trading under the trend line (Red) and on the daily support zone (Grey) at $0.1512 – $0.1584, indicating a potential area where the price might stabilize or bounce. . After the rejection from the trend line and the weekly resistance zone (Pink) at $0.3587 – $0.3747 we saw a pullback in the price.
If the price fails to hold the daily support zone (Grey) we might see the price to the next strong monthly support zone (Brown) at $0.1294 – $0.1372. However, there is a chance that the price could not break through from this zone and we could see a bounce to the trend line and the resistance zone (Green) at $0.2037 – $0.2108.
If the ENJ price breaks above the resistance zone (Green) and the trend line (Red), it could rise to the next resistance zone (Yellow) at $0.2659 – $0.2778. If it moves above this zone it might reach the higher resistance zones.
While the bearish setup currently dominates, traders should remain vigilant for signs of a trend reversal or breakout above key resistance levels. Continuous monitoring of volume and market sentiment will also be crucial in confirming the strength of any potential bullish reversals or further bearish continuation.
Currently at the time of writing the trading volume is at $3.731M, indicating a lack of strong buying interest at the current levels. A significant increase in volume would be necessary to confirm any potential reversal or breakout.
Technical Indicators
Based on technical indicators on a daily time frame
The relative Strength Index (RSI) value is at 35.25 (Neutral)
Momentum (10) is at -0.0183 signaling a (Buy)
MACD Level (12, 26) is at -0.0061 signaling (Sell)
Exponential Moving Average (50) 0.1997: (Sell)
Exponential Moving Average (100) 0.2401 : (Sell)
Simple Moving Average (100): 0.2441 (Sell)
Exponential Moving Average (200): 0.2817 (Sell)
Ichimoku Base Line (9, 26, 52, 26): 0.1812 (Neutral)
Volume Weighted Moving Average (20): 0.1863 (Sell)
Hull Moving Average (9): 0.1623 (Buy)
Interpretation
Given these indicators, traders might consider looking for short-term buying opportunities if the market shows signs of reversal from the oversold condition. However, the overarching bearish trend highlighted by the moving averages would suggest keeping any bullish trades short-lived and closely monitored, especially aligning with your preference for scalping with tight stop losses and specific take-profit targets.
Liquidation Heatmap
The ENJ liquidation heatmap shows over three months, highlighting a critical resistance zone between $0.2066 and $0.2165 where significant liquidations have occurred, as indicated by the red area on the heatmap. This zone is marked by a concentration of liquidations, suggesting heavy trading activity and potential resistance; for traders, particularly those engaged in scalping strategies like yourself, this area is key for observing potential entry or exit points. A rebound or retreat from this level could indicate trading opportunities: a retreat may suggest a viable short position, while a break above could signal a shift to bullish momentum, making it crucial to monitor price action closely around this range for strategic trades.
Long-Term Trading Setup
We will buy in parts, we will divide our budget into 2 sections, and allocate for buying at each key support mentioned in the chart.
Here are the numbers where you can buy ENJ and take profits for the trade.
Buy 1: Current
Buy 2: $0.1294
Buy 3: $4.316
At buy 2 we will go all in because this is the lowest.
TP1: $0.2778
TP2: $0.4263
TP3: $0.6850
Conclusion
This technical analysis of Enjin Coin (ENJ) underscores a consistent bearish trend highlighted by a descending trend line since March 2024. The analysis reveals critical support and resistance levels where ENJ’s price may stabilize or decline further. With the current low trading volume indicating weak buying interest, a significant volume increase would be necessary to confirm any potential market reversal.
Technical indicators provide mixed signals, suggesting cautious, short-term buying opportunities within the prevailing bearish context. For traders, especially those employing scalping strategies, monitoring significant liquidation zones for potential entry or exit points is crucial. Overall, while the bearish trend dominates, astute traders should stay alert for any signs of a trend reversal and adapt their strategies accordingly to capitalize on short-lived market movements.
Your Essential Trading Newsletter
This detailed analysis provides a comprehensive understanding of the current market structure and potential scenarios. Traders can use these insights to make informed decisions and effectively navigate the market.
Stay tuned to The Crypto City Trading Newsletter for more in-depth analyses, market insights, and expert guidance. As always, we strive to empower you with the knowledge and tools needed to navigate the fast-paced world of cryptocurrency trading. Happy trading!
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Warm regards,
The Crypto City Trading Team