The ENJ token recovered impressively from its minor retracement phase. The token is up around 50% from its low this week and has broken through the All-Time High Resistance of $3.53. If the token price remains above this resistance level, ENJ will likely experience a strong rally.
Technical highlights include:
- On the daily time frame chart, the price action of the ENJ token forms a Cup and Handle.
- The daily RSI chart shows a significant bearish divergence for the ENJ price.
- The ENJ token’s intraday trading volume is $1.6 billion, representing a 51.4 percent increase.
By forming a Cup and Handle pattern on the daily time frame chart, the ENJ token signaled an excellent opportunity for its traders. The neckline of this pattern coincided with the ATH resistance level, which was $3.53. On November 19th, the token provided a deceptive breakout from this overhead resistance, signaling an entry signal for these traders.
The ENJ token’s critical EMAs (20, 50, 100, and 200) show a strong bullish alignment. Furthermore, the 20 EMA line is a strong support for the token price.
The Relative Strength Index value of 69 indicates that the token is still bullish. The RSI, on the other hand, shows a significant bearish divergence in its chart, casting doubt on this bullish rally.
ENJ/USD 4-hour Time Frame Chart
To test for proper support, the ENJ token price retraced back to the $3.53 neckline. A 4-hour bullish engulfing candle on the chart indicated strong bullish momentum in this token. However, the bearish divergence in the RSI cannot be ignored, and crypto traders should exercise extreme caution if they enter a long trade.
The nearest resistance for this token, according to the daily-traditional pivot levels, would be at $4.66, followed by $5.85.