The Enjin Coin (ENJ) is showing strong overbought signals on the hourly timeframe, presenting an attractive selling opportunity with a favorable risk-to-reward ratio.
Technical Analysis:
Current price: 0.0671 USDT with recent rejection at 0.0674 resistance level
RSI (14) reading: 65.00, showing momentum shift after reaching overbought territory
Volume profile: Trading volume of 447.81K shows significant activity but potential exhaustion
Market structure: Price formed a clear resistance zone between 0.0671-0.0685
Key Observations:
ENJ has formed a potential double top pattern with clear resistance at the 0.0674 level
The price action shows signs of bullish exhaustion after the recent rally from 0.0630
RSI indicator has been trending downward from overbought levels, suggesting diminishing buying pressure
Price is currently testing a key resistance zone with visible rejection wicks on the hourly candles
Trade Setup:
Entry point: 0.0671 (current price) or on rejection from 0.0674 resistance
Stop loss: 0.0685 (above recent swing high)
Profit targets:
Target 1: 0.0650 (previous support level) - 31% of position
Target 2: 0.0630 (strong support zone) - 49% of position
Target 3: 0.0619 (green zone support) - 20% of position
Risk Management:
Maintain a risk exposure of maximum 2% of total capital
Suggested position size based on volatility: ~145 ENJ
Risk-to-reward ratio: 1:3.2 (excellent opportunity)
Current market sentiment reflects fear (Fear & Greed Index: 32), creating conditions where retail traders may panic sell on the first signs of downward movement, accelerating our targets.
Remember, proper risk management is crucial - stick to your exit strategy regardless of short-term price action
Technical Analysis:
Current price: 0.0671 USDT with recent rejection at 0.0674 resistance level
RSI (14) reading: 65.00, showing momentum shift after reaching overbought territory
Volume profile: Trading volume of 447.81K shows significant activity but potential exhaustion
Market structure: Price formed a clear resistance zone between 0.0671-0.0685
Key Observations:
ENJ has formed a potential double top pattern with clear resistance at the 0.0674 level
The price action shows signs of bullish exhaustion after the recent rally from 0.0630
RSI indicator has been trending downward from overbought levels, suggesting diminishing buying pressure
Price is currently testing a key resistance zone with visible rejection wicks on the hourly candles
Trade Setup:
Entry point: 0.0671 (current price) or on rejection from 0.0674 resistance
Stop loss: 0.0685 (above recent swing high)
Profit targets:
Target 1: 0.0650 (previous support level) - 31% of position
Target 2: 0.0630 (strong support zone) - 49% of position
Target 3: 0.0619 (green zone support) - 20% of position
Risk Management:
Maintain a risk exposure of maximum 2% of total capital
Suggested position size based on volatility: ~145 ENJ
Risk-to-reward ratio: 1:3.2 (excellent opportunity)
Current market sentiment reflects fear (Fear & Greed Index: 32), creating conditions where retail traders may panic sell on the first signs of downward movement, accelerating our targets.
Remember, proper risk management is crucial - stick to your exit strategy regardless of short-term price action
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.