Enjin Coin (ENJ) – Bears aiming to stretch the short-term negative trend

Enjin Coin (ENJ) – Bears aiming to stretch the short-term negative trend

Posted on Sunday, October 2 2022 at 8:18 pm GMT+0000

Enjin Coin (ENJ) has been trending downwards since mid-September, generating a keen structure of lower tops and lower bottoms, and is currently testing the 0.442 support aiming to stretch the negative trajectory. Moreover, the 20- and 40- period exponential moving averages are plummeting along the price action, endorsing the bearish outlook.

The momentum indicators are also leaning towards a continued downside development in the price. The MACD slid below its signal line in the negative territory, and the +DI and the +DI lines of the ADX indicator are diverging and bearishly aligned, with the indicator itself skyrocketing above 25, hinting at a strong downtrend.

The bears appear to be holding control at the time being and if they manage to snap the Wednesday low of 0.442, they will gain more confidence to push towards the Fibonacci golden number at 0.426. Clearing that too will pave the way toward the 261.8% Fibonacci extension at 0.400.

On the flip side, if the bulls resurface, and manage to surpass the 20 and 40-period exponential moving averages, they will tackle the September 30th top at 0.468. Next, they will aim for the September 27th high of 0.484. Another thrust higher will brighten the short-term outlook turning the spotlight instantly to the 17th of September top at 0.524.

In brief, Enjin Coin is exhibiting a strong downtrend on the four-hour chart and a firm drop below 0.442 will exacerbate the negative momentum. For sentiment to improve, buyers would need to surge above the exponential moving averages and the 0.484 high.