Key Takeaways
- Enzyme Finance prices decline to critical support level.
- Threat of further correction remains, which can push prices down by 18%.
- If Enzyme breaches the next support level, prices could fall to $45.229 before rebounding.
NEW DELHI (CoinChapter.com) — Enzyme Finance, the on-chain asset management protocol, failed to maintain its upside bias. As the MLN token’s price corrected, Enzyme lost nearly all the gains made this week. Moreover, MLN price charts indicate chances of a breakdown below the current support level, which may pull prices down by 18%
MLN Price Chart
The Enzyme token rose by almost 22% on July 5, boosted by its addition to Binance’s global trading platform. However, MLN failed to consolidate this boost, and prices started falling from the next day. The token fell 32.4% from Monday’s high of $120.174 to July 9’s low of $81.001.
The 20-Day (Green) Exponential Moving Average and 50-Day (Yellow) Moving Average have formed a critical support confluence for MLN at the $81 price level. However, the 50-Day MA seems to be moving above the MLN prices, indicating a short-term bearish trend shortly.
Additionally, if the price continues its downward trend, the next support is on the ascending trend line at $60.856. The 200-Day (Violet) Moving Average is at the same level. For now, MLN is bullish in the long term. However, if prices breach the 200-Day MA, it may create a selling sentiment in investors, further pulling down prices. A breach of the trend line and 200-Day support level could see prices falling to $45.229 support before rebounding.
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If the Enzyme token manages to rebound from the 20-50 MA confluence of the trend line support, an upward rally will test the resistance at $124.609. Interestingly, MLN has failed to breach the $124 level since June 9.
Conversely, the MACD trend-based oscillator keeps hopes alive for the bulls. The MACD line (a difference between 12-Day and 26-Day EMA on the daily chart) is above the MACD signal line (9-Day EMA of MACD), indicating bullish momentum for MLN. In addition, the MACD histogram is above zero too.
The relative strength index for the Enzyme token is 49.12. Although neutral for now, the RSI line is moving downwards towards oversold levels.
Other Enzyme Updates
Enzyme Finance is an Ethereum-based protocol that aims to decentralize traditional asset management. The idea is to make asset management available to more investors globally. Using Enzyme, users can invest in funds and portfolios of other users, with a minimal fee paid in MLN.
Also Read: Here’s why this crypto analyst thinks altcoins are close to bottoming.
On July 5, Enzyme announced that it has teamed up with DeFi protocol Yearn to offer better yield opportunities for its users. Yearn Finance is a group of Ethereum-based protocols that allow users to engage in yield farming. At the time of writing, Yearn Finance had a total locked value of $3.96 billion. Moreover, the total value locked in Enzyme has jumped from $39.74 million on June 15 to $86.8 million on July 9.
Another boost for MLN is an endorsement by Coinshare Ventures, a venture capital firm based in London. In an article, the firm explained how Enzyme is transforming fund management.
Although the fundamentals for Enzyme remain strong, if MLN fails to rebound from its current support level, a bearish rally may begin soon. At the time of writing, the Enzyme token was trading at $81.325.
