The Enjin Coin price is topping the list of the top 100 cryptocurrencies with its upward rally by posting an upward rally of around 30% in the last few days. Is it still worth getting into ENJ at this point?
Together with FatpigSignals, we explain to you now and here why an entry is currently not advisable, but at what point an attractive opportunity would be given and what to look out for in the current market.
In a turbulent market like the current crypto market, riskier investment alternatives are often avoided. In the case of the crypto market, these are the altcoins compared to Bitcoin (BTC) in any case. Therefore, everyone should think twice before investing in Altcoins to be involved in cryptocurrencies instead of simply holding BTC.
However, there are always exceptions, of course. Altcoins that, even in times like these, outperform the rest of the market and, therefore, the Bitcoin price. One of these altcoins seems to be the Enjin Coin.
The Enjin Coin price has skyrocketed by over 150% in just a few days since its current low. This shows what kind of momentum such altcoins can still build up. However, it would be fatal to blindly follow such price rallies and rush head over heels into the market. Especially in a market phase like the current one, most market participants and their actions are still primarily guided by the fear of another crash.
For sure, one thing is that most altcoins are likely to underperform against the bitcoin price. So the question is whether Enjin Coin is one of the few exceptions that could outperform the mother of all cryptocurrencies in the coming days and weeks.
It is always a good idea to look at which projects the smart money is flowing into. We have recently looked for so-called accumulation phases of smart money on the charts and used Wyckoff’s scheme. The reason for this is that the recent Bitcoin price crash was once again witnessed because such accumulation and distribution phases are highly relevant for the crypto market. If you want more such analysis, then join our Fatpigsignals Telegram group.
On the other hand, Altcoins can rarely keep up with BTC when it is in an uptrend. Their heyday only comes when the Bitcoin price is in a sideways movement, i.e., after the momentum around BTC has flattened out again. Few altcoins can perform better during a trending phase of BTC. This is especially true in a downtrend of BTC, but it is also true for an uptrend. To examine whether Enjin Coin is one of such exceptions, we need to look at the ENJ/BTC chart instead of just looking at its performance against the US dollar.
In fact, the chart shows that the ENJ price has gone through a short-term accumulation phase against BTC. It has all the concise events of one, and the recent sharp rise in the Enjin Coin price is due to it breaking out of the accumulation phase to enter a short-term uptrend against BTC.
However, it looks like the market has been a bit too hasty to go up here. On the 1-hour chart, a bearish divergence has formed on both the RSI and MACD indicators, as well as a double top formation.
A small support zone is just below the current price level of just under 4,500 sats, but the double top formation suggests a minimum price target of 3,900–4,000 sats. This would also fit more into the pattern of an accumulation phase. After a JAC event (JAC = Jump Across the Creek), where the upper limit of the trading range is clearly broken, there is often another clear countermovement, which leads the price back again. This is also the last major counter-reaction before the short-term upward trend would finally start.
However, it looks like the market has been a bit too hasty to go up here. On the 1-hour chart, a bearish divergence has formed on both the RSI and MACD indicators, as well as a double top formation.
A small support zone is just below the current price level of just under 4,500 sats, but the double top formation suggests a minimum price target of 3,900–4,000 sats. This would also fit more into the pattern of an accumulation phase. After a JAC event (JAC = Jump Across the Creek), where the upper limit of the trading range is clearly broken, there is often another clear countermovement, which leads the price back again. This is also the last major counter-reaction before the short-term upward trend would finally start.
This expected countermovement, which should transform the former resistance into support, could accordingly also represent a simultaneously lucrative opportunity to enter the Enjin Coin price still here.
It is always important to wait for trading opportunities and observe the market and its development until then, instead of rashly jumping on rising prices. Patience usually pays off.
Stop watching everybody else make money! Fatpigsignals watches the markets closely and uses book order analysis, short-term volume movements, and a crack team of trading pros to monitor the winning trends for you.
Note: This article is not investment advice, nor is it intended to encourage our readers to make investment decisions based on an article on Bitcoin-Bude.de. Please make your decisions based solely on your own research and assessments.
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Source: https://medium.com/coinmonks/is-an-entry-into-enj-still-attractive-1dd73dba723?source=rss——-8—————–cryptocurrency
