Enjin Coin (ENJ) Struggles to Gain Momentum as Downtrend Looms

Key Takeaways

• Descending structure breakdown or continuation possible.
• Key Fibonacci support at 0.5 ($0.09184).
• RSI divergence signals potential exhaustion.

Enjin Coin (ENJ) has been in a prolonged downtrend, forming a descending channel while maintaining support within a key demand zone.

The price action suggests a potential wave completion, with the momentum indicator signaling possible reversal conditions.

ENJ Price Analysis

The 4-hour chart of ENJ illustrates a multi-month corrective structure, with price action contained within a well-defined descending wedge.

The Elliott Wave count suggests that ENJ has completed a five-wave decline from its peak, reaching a key support zone between $0.09 and $0.12.

A notable factor in this analysis is the Relative Strength Index (RSI), which has consistently remained in the lower range, showing signs of bullish divergence.

This suggests that downward momentum may weaken, potentially setting the stage for a relief bounce or trend reversal.

The Fibonacci retracement levels provide additional confluence, with the 0.5 extension level around $0.09184 as critical support.

A further breakdown could extend losses toward the 0.618 Fibonacci level ($0.02043), but the successful defense of the current range could initiate a corrective wave upward.

The previous corrective pattern hints at a completed ABC retracement, implying that a broader accumulation phase might be forming.

However, confirmation of bullish momentum requires a break above descending resistance and reclaiming the $0.16-$0.18 zone.

ENJ Price Prediction

On the 1-hour chart, ENJ remains within a compressed range following a steep downward impulse.

The wave structure suggests that ENJ could be in the final stages of a five-wave decline, with wave (v) potentially extending slightly lower before a corrective bounce.

There are two primary scenarios at play:

Bullish Reversal Scenario: If ENJ holds above $0.09 support and reclaims $0.16 (0.382 Fibonacci retracement), it could confirm a local bottom.

This would set up a wave structure targeting the $0.25 resistance zone (0.236 Fibonacci retracement). A move above the descending trendline would further validate a trend shift.

Further Downside Scenario: If ENJ breaks below the $0.09 support zone, the next leg down could push it towards the 0.618 Fibonacci retracement at $0.020.

This scenario would align with an extended capitulation phase before a recovery attempt.

The RSI on the 1-hour chart remains in the oversold region, hinting at an imminent relief bounce.

However, volume expansion and structural confirmations are necessary for a true reversal.

Key Levels to Watch

• Immediate Resistance: $0.16325 (0.382 Fibonacci retracement).
• Key Support: $0.09184 (0.5 Fibonacci retracement).
• Critical Support: $0.02043 (0.618 Fibonacci retracement).
• Short-Term Target for Wave (v): Above $0.16 if momentum sustains.
• Invalidation Zone: Below $0.09, signaling further downside potential.