According to reports from AMBCrypto, Enjin [ENJ] experienced a significant 27.5% rally during the week starting May 18th, moving from $0.040 to $0.051. This short-term surge followed a substantial 450% rally within two weeks achieved a month ago, which established a higher timeframe bullish bias. The recent gains occurred on heavy spot trading volume and successfully overcame nearby swing highs that were expected to serve as resistance levels, though the cryptocurrency failed to break through the $0.0517 resistance level.
As reported by AMBCrypto, the internal structure of ENJ has not yet shifted bullishly, requiring a move beyond the $0.0536 local high to establish such a change. The rally at the beginning of this week attempted but failed to breach the $0.0517 resistance level, indicating a potential swing failure pattern. At the time of writing, ENJ exhibited a bullish reaction from the 61.8% retracement level at $0.0445, though traders are advised to exercise caution against FOMOing into long positions. The recent price movement appears more like a liquidity sweep rather than a definitive structural shift.
According to the technical analysis from AMBCrypto, it remains possible that ENJ retraces to $0.042 or even below $0.04 following the recent rally. The report characterizes the beginning-of-week rally as resembling a liquidity sweep more than a structural shift. After sweeping the $0.05 liquidity, the price moved into long liquidations clustered around $0.045, with the zone down to $0.0432 needing to be cleared for improved rally chances. Traders are advised to await clearer breakout signals before considering long positions.
As reported by AMBCrypto, the liquidation heatmap and failure to exert a clean structural break have threatened a deeper ENJ price retreat in the short-term. The analysis suggests that while the mid-April rally has set up potential for another rally, the recent weekly gains might not be the catalyst for sustained upward momentum. Buyers are advised to remain cautious and wait for a cleaner structural break instead of chasing the current price action, as the cryptocurrency continues to struggle with resistance levels despite heavy trading volumes.
