Enjin (ENJ) – Exposed to additional bearish developmentsPosted on Sunday, March 6 2022 at 8:40 pm GMT+0000
The Ethereum token that aims to make it easy for individuals, businesses, and brands to use non-fungible tokens, Enjin (ENJ) has taken some heavy damage lately, and slipped below its 20- and 55-period exponential moving averages on the four-hour chart.
The price seems in the process of fulfilling a continuation Head & Shoulders pattern, with short-term oscillators indicating that the negative momentum will likely intensify. The ROC just nudged below its equilibrium, and the DI+ and the DI- lines are negatively intersected.
A break below the neckline of the Head & Shoulders at 1.329 will push towards the 161.8% Fibonacci extension at 1.241. And a sustainable move below that level will intensify selling pressures, opening the way towards the 261.8% Fibonacci extension at 1.098, before sellers take aim at the pattern target around 0.987.
On the flip side, if buyers resurface and overcome the 20-period exponential moving average, they will meet the right shoulder top, reinforced by the 55-period exponential moving average at 1.472. Any step higher and most importantly beyond the left shoulder of the pattern at 1.517 will revive buying interest, triggering a fresh test of the March 1st high at 1.646.
In brief, Enjin is still exposed to additional bearish developments. A rebound above 1.517 could substantially reduce such risks. Otherwise, a bearish extension towards 1.241 remains the most likely scenario.