Key Takeaways:
- Enjin Coin price has been rallying upward since March 28
- ENJ seems poised to break out of a bullish technical pattern
- Upcoming launches and upgrades might be pushing ENJ prices
NEW DELHI (CoinChapter.com) — Enjin Coin (ENJ) price has been increasing since March 28, as Enjin, the Ethereum-based NFT platform, announced an upgrade to its user interface and the upcoming launch of an NFT marketplace.
Enjin stated the new platform design would simplify the lives of developers. For example, users can create collections, tokens, and beams. Moreover, the upgrade would allow game developers to approve, freeze, mutate, and destroy assets from one platform.
Furthermore, the blockchain platform shared that Enjin aims to “prioritize making things work” for game developers and players.
Another bullish cue for Enjin Coin is the upcoming launch of a new marketplace called NFT.io, which the platform hopes will become the NFT marketplace in the industry.
Some of the promised features include verification badges, the introduction of beams, and a re-designed Current Asset page.
Enjin Coin Poised To Break Out Of Bullish Pattern
Enjin Coin has been moving inside a bullish technical pattern called the Ascending Triangle, and the token is close to breaking out of the pattern.
Though the ascending triangle is usually a continuation pattern, an asset might form the pattern during a downtrend as a reversal pattern. A horizontal line connecting swing highs and a rising trendline connecting swing lows form the pattern.
In an ideal world, buyers would enter the market as the trendlines close the gap, pushing prices above horizontal resistance with heavy volumes. The price target for a breakout is equal to the triangle’s height at its thickest point.
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Therefore, ENJ’s price might rise to $1.59, jumping 231%. The pattern has been contracting, and the prices would break out above the pattern, or the triangle might act as a continuation pattern.
If the Enjin Coin price breaks below the pattern, ENJ might drop to $0.14, shedding nearly 72% from its current levels.
ENJ Price Chart
Meanwhile, ENJ price spiked 19.5% to form a daily high near $0.5 on April 7. The rally helped the Enjin token chart a 40-day high before bears pared some gains.
Moreover, the uptrend helped ENJ’s 20-day EMA (red wave) move above its 100-day EMA (blue wave) to form a bullish pattern called the golden cross. Traders often consider the pattern an indicator of positive market sentiment and a buy signal.
As buyers enter the market, ENJ’s price could rise to resistance near $0.525. Moreover, a break and hold above immediate resistance might help the Enjin token target resistance near $0.594 before retreating.
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On the other hand, the relative strength for ENJ is near the overbought threshold, clocking at 66.68 on the daily chart. An overbought RSI level often forecasts an impending trend reversal for an asset. Hence, traders often consider the pattern a sell signal.
As a result, ENJ’s price might drop to test its 200-day EMA (green wave) support near $0.469. Breaching the immediate support level could force ENJ price to drop to the 20-day EMA (red wave) support near $0.403 before recovering.
