- The Enjin Coin price has dropped 13% in the past 12 hours, but found support around $ 2.37.
- The chain readings show opposing views on the ENJ, suggesting further consolidation.
- The bullish thesis will be disproved when the demand barrier is broken at $ 2.19.
Enjin Coin price dropped slightly today as it approached consolidation.
Enjin Coin Price Continues To Be Away
The 4-hour chart shows that the price of Enjin Coin is stuck in a tight range of $ 2.36 to $ 2.78. By marking the lower trendline, ENJ buyers raised its market value by 7%.
While this move is bullish in the short term, it is unclear if it will be enough to break the upper border. Failure to break the $ 2.78 resistance level would result in a repeat of its decline towards the $ 2.36 support.
For this reason, buyers must suppress sellers and produce a decisive 4-hour candle close above $ 2.75 to establish a new uptrend. Breaking it would allow the price of Enjin Coin to rally 5% before moving closer to the supply zone, which ranges from $ 2.94 to $ 3.08.
4-hour chart ENJ / USDT
According to the IntoTheBlock In / Out of the Money Around Price (IOMAP) model, resistance levels add up and can prevent the Enjin Coin price from rising rapidly.
The immediate supply level of $ 2.57 includes about 7,000 addresses for which 32.39 million ENJ were purchased and which are “out of the money”. Likewise, these underwater market participants expand to $ 2.88, which overlaps the supply area described from a technical point of view.
ENJ IOMAP table
While the upward movement for this altcoin will face headwinds, the stacked support barriers below the current price indicate that it will not be easy to sell as the 3,200 addresses from which $ 42.85 million was bought. The ENJ at an average price of $ 2.49 will cushion and ease selling pressure. Hence, this combination of stable demand and supply barriers enclosing Enjin Coin could drive sideways movement.
Hovering in a shopping area with few or no shoppers
Santiment’s 30-day Market to Realized Value (MVRV) model, which tracks the profit / loss of all members of the Enjin Coin network over the past few months, shows that it is in the zone of opportunity at -13.9%.
The sudden drop in MVRV indicates that short-term traders are making a profit, creating an opportunity for long-term holders to accumulate.
The last time MVRV fell below -11%, the price of Enjin Coin jumped almost 67% over the next three weeks. Thus, this index suggests that the ENJ is undervalued at current levels and may soon see its market value rise.
MVRV ENJ chart 30 days
While the MVRV Enjin Coin model suggests that current price levels represent a great buying opportunity, market participants do not appear to be interested in acquiring ENJ based on a 73% drop in new addresses joining the Enjin network.
This reduction from 4,400 to 900 addresses generated per day indicates that investors are not interested in Enjin Coin at the current price, or that they may reallocate their funds.
However, from a network perspective, the price of Enjin Coin paints a pessimistic picture.
New ENJ address table
While the short-term outlook shows buyers supporting the ENJ price, the long-term scenario is much more ambiguous as seen in the technical and intranet indicators.
Therefore, investors should wait until a clear trend is established. A sudden spike in buying pressure that cuts the $ 3.08 resistance level would signal the start of a new uptrend and could push the ENJ up 6% to $ 3.27. However, if the price of Enjin Coin convincingly breaks the $ 2.19 support barrier, an 8% drop to $ 2.01 looks likely.