Enjin Coin (ENJ) has been developing a bullish pattern since May 16 and the RSI has also displayed bullish divergence.
Since hitting an all-time high of £4.6 in November, ENJ has been declining. The price of ENJ has already dropped by around 89%.
The horizontal support area of £0.34 has seen a price reversal. This level has been reached for the first time since the start of the year.
The RSI’s decline below 50 is an intriguing event. This last occurred before the upward movement began in March 2020.
Since climbing as high as £1.65 on March 31, ENJ has been losing ground over a shorter timeframe. On June 18, the price fell to a low of £0.31.
The price of ENJ formed a double bottom between May 12 and June 18, which is regarded as a bullish pattern.
The daily RSI showed bullish divergence in addition to the double bottom. Furthermore, by rising above the high between the divergences, the RSI successfully completed a swing bottom. This suggests that the ascending trend will likely continue.
The closest resistance area, established by the 0.382 Fib retracement resistance level and a horizontal resistance area, would be between £0.84 and £0.88 if the pattern results in a breakout.
A chart of ENJ was tweeted suggesting that if the price can hold above £0.42, the recovery may continue.
The price has remained over £0.42 since the tweet. A descending resistance line that has been there since May 16 is also fairly near by.
ENJ has so far made five attempts to break out and is currently attempting a sixth. An eventual breakout is possible because resistance weakens with each push.
If it does, £0.63 would be the area of closest resistance.