Enjin Coin Price Prediction: ENJ Could Rally Back to $4 Based on Extremely Accurate Indicator
- Enjin Coin gains considerable ground after support at $2.15.
- The MVRV on-chain model reveals that ENJ holders are less likely to sell in the short term.
- Technical levels on the four-hour chart reinforce the bullish outlook.
Enjin Coin embraced support at $2.15 following a colossal breakout from the all-time high of $4. The gravitational force was stressed by the heightened volatility in the market over the previous weekend when Bitcoin (BTC) dropped from $65,000 to $51,000.
The crucial support saw bulls take control, catapulting Enjin Coin toward $3. In the last 24 hours, the token has accrued more than 18% to trade at $2.7. If the technical picture remains unchanged or improves, ENJ will resume the recovery path to $4.
Enjin Coin Slides to the Buy Zone
The market value realized value (MVRV) by Santiment reveals that Enjin Coin has dived massively into the buy zone. The call to buy comes after the MVRV ratio shot to a 30-day high of 32.6% before gradually dropping to -17%.
According to Santiment, the model reveals the average profit or loss of the holders of ENJ tokens moved over the 30 days compared to the price when each of the tokens last moved. For instance, a higher MVRV ratio reveals holders realize incredible profits, hence the need to sell for profit.
On the other hand, a lower MVRV ratio such as -17% indicates that investors incur massive losses and prefer to hold until the price recovers. Therefore, Enjin Coin is in the buy zone and may continue to rally amid reduced overhead pressure.
ENJ MVRV Model
Meanwhile, Enjin Coin has closed the gap to the descending channel’s upper limit. The immediate downside is supported by the 200 Simple Moving Average (SMA) on the four-hour chart.
Trading above the channel’s resistance as well as the confluence formed by the 50 SMA And the 100 SMA would pave the way for massive liftoff eyeing $4. Moreover, the Moving Average Convergence Divergence (MACD) indicator emphasizes the ongoing uptrend.
ENJ/USD Four-Hour Chart
The Relative Strength Index (RSI) on the four-hour chart confirms the bullish outlook by moving fast toward the overbought region. Enjin Coin must close the day above the channel and the $3 level to secure the remaining uptrend to $4.
Enjin Coin Bearish Picture
Enjin Coin still trades within the confines of the descending parallel channel. The resistance at the upper limit may continue to hinder price movement. Besides, the 50 SMA and the 100 SMA confluence hurdle around $3 could sabotage price action. On the downside, support at the 200 SMA is expected to halt declines, but the middle boundary will be tested if push comes to shove.