Enjin [$ENJ] saw a sizeable short-term rally to get the week off to a good start. On the 18th and 19th of May, $ENJ rallied by 27.5% at its peak, moving from $0.040 to $0.051.
These short-term gains were not isolated. A month ago, the altcoin had rallied 450% within two weeks to set up a higher timeframe bullish bias. These gains occurred on the back of heavy spot trading volume and easily overcame nearby swing highs that were expected to serve as resistance.
Source: $ENJ/$USDT on TradingView
The internal structure of $ENJ has not yet shifted bullishly. A move beyond the $0.0536 local high is needed to bring about such a change. The rally at the start of this week tried, and failed, to breach the $0.0517 resistance level.
Is the Enjin retracement over？
Source: $ENJ/$USDT on TradingView
That depends on whether traders can read it as a structural break on the 4‑hour chart. Technically, it was a break, with a session close above the previous lower high. Yet, the volume trends during and after the move, combined with the large upside candlewick, indicated a swing failure pattern.
At the time of writing, $ENJ exhibited a bullish reaction from the 61.8% retracement level at $0.0445. Yet, traders should be careful not to FOMO into long positions.
It is still possible that $ENJ retraces to $0.042 or even below $0.04. The rally at the beginning of the week resembled a liquidity sweep more than a structural shift.
Source: CoinGlass
After sweeping the $0.05 liquidity, the price moved into long liquidations clustered around $0.045. Once the zone down to $0.0432 is cleared, the chances of an $ENJ rally improve.
Yet, buyers must remain cautious. This was not yet an obvious buying opportunity. It might be better to wait for a cleaner structural break instead of chasing the price.
Final Summary
- Enjins mid-April rally has set up the potential for another rally, but the one earlier this week might not be it.
- The liquidation heatmap and the failure to exert a clean structural break threatened a deeper $ENJ price retreat in the short-term.