Enjin Coin Technical Analysis: The Coinbase Effect Catapults Enjin Coin Price to the Moon After Listing
Daily Enjin ENJ Price Analysis
- Enjin Coin explodes to new all-time highs after listing on Coinbase Pro.
- The MACD reinforces the bullish outlook based on the four-hour chart.
- Enjin Coin faces resistance at $3.5, likely to jeopardize the upswing.
Enjin Coin recently broke out of a long consolidation period. The upswing was accentuated by the announcement on Wednesday that Coinbase Pro was preparing to add ENJ to the tradable instrument list. From the support at $2, ENJ shot massively upward and almost brushed shoulders with $3.5.
Enjin Coin Hit New Record Highs
Coinbase announced via The Coinbase Blog that Enjin Coin alongside 1inch (1INCH), NKN (NKN) and Origin Token (OGN) was to start trading on Coinbade Pro on Friday. The exchange began receiving deposits on Wednesday to build the required liquidity before trading commences.
The Coinbase effect has become a phenomenon to look forward to in the cryptocurrency market. It refers to the impact on a digital asset when listed on Coinbase. The United States exchange-based has become a global leader in the industry and listing on the platform serves as validation of crypto projects. Many cryptocurrencies rally when the announcement is made, with others continuing with the rally after trading begins.
The exact impact can be observed with Enjin Coin, which has rallied over 72% since the announcement. If the short-term resistance at $3.5 gives way, ENJ could spike to new record highs, perhaps close to $5.
Meanwhile, the uptrend is supported by the Moving Average Convergence Divergence (MACD). The MACD line (blue) divergence from the signal line indicates that the uptrend is still intact.
ENJ/USD Four-Hour Chart
Enjin Coin Pessimistic Outlook
The upswing from $2 seems to have hit a wall at $3.5. Enjin Coin must break this resistance to validate the uptrend to another new all-time high. However, closing the day under this level could trigger massive losses, especially with the Coinbase effect cooling down. On the downside, support is envisaged at $3, the 50 Simple Moving Average (SMA) on the four-hour chart and the primary anchor at $2.