Trade Recommendation: Enjin Coin
Enjin Coin (ENJ/BTC) is a very good example of what happens when a parabola bursts. On February 25, 2019, the cryptocurrency took out resistance of 0.000018. The breakout triggered a parabolic run that saw Enjin Coin climb as high as 0.00006391 on March 9th. That’s an increase of over 255 percent in about two weeks.
From that point, Enjin Coin unraveled. Bears took out one support after another as the market gave up most of its gains from the parabolic run. As of this writing, the cryptocurrency is back trading around 0.000018. We believe that this may be a good opportunity to open a fresh long position.
Technical analysis shows that ENJ/BTC is respecting support of 0.000018. This view comes as bulls refuse to give up this level. Since May 13th, bears have been working very hard to take out this support. However, bulls are holding their ground and it appears that they will continue to do so as technical indicators favor the bulls.
First, the daily RSI is trading very close to oversold conditions. The expected selling relief should help bulls maintain their territory. In addition, the volume has been really anemic. Bears wouldn’t be able to punch through 0.000018 without heavy selling pressure. As long as the volume is thin, bulls are very likely to absorb positions dumped at current levels.
The strategy is to buy as close to 0.000018 support as possible. As long as the market is above this level, the target is the resistance of 0.0000265.
The process may take less than a month.
Daily Chart of Enjin Coin/Bitcoin on Binance
Summary of Strategy
Buy: As close to 0.000018 as possible.
Disclaimer: The writer owns bitcoin, Ethereum, and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.