Enjin Coin Price Analysis: Time to Fade the ENJ Bounce?

Summary:
• The Enjin Coin price has bounced 35% from last week's low as confidence returns to the crypto market, but significant resistance awaits.

The Enjin Coin price has bounced 35% from last week’s low as confidence returns to the crypto market, but significant resistance awaits.

The cryptocurrency market is heading into the holiday weekend in much better shape following Bitcoins’ recovery to $51,000. Most of the top altcoins are in the green this week, paring the losses suffered earlier in December.

Enjin Coin (ENJ) has gained around $0.77 (+33.20%) from Monday’s low, although slightly softer at $2.91 (-2.18%) this morning. The positive price action has lifted the Metaverse and Gaming coin’s market cap close to $2.5 billion, ranking it the 5th largest ‘Metaverse’ project and the 59th most valuable cryptocurrency. However, the price is approaching confluent resistance, which may cap further gains in the near term.

ENJ Price Forecast

The daily chart shows the Enjin Coin price is above the 100 and 200-Day Moving Averages (DMA’s) and approaching the 50-DMA at $3.05. Notably, the 50-DMA sits just above the 50% Fibonacci retracement level of $3.018 and the upper Bollinger band at $3.011. The technical outlook improves If ENJ climbs above the 100-DMA at $3.05. In that event, $3.50 and $4.00 are logical upside targets.

In my opinion, ENJ may struggle to clear $3.00 initially, considering the confluent resistance above. Therefore, I expect the coin to retrace back to the support of the 50-DMA in the coming sessions.

The bullish momentum should remain intact if the price remains above the 50-DMA. However, a daily close below it targets the 200-DMA at $2.41.

Enjin Coin Price Chart (Daily)

For more market insights, follow Elliott on Twitter.