- Enjin Coin price suffered a breakdown from a head-and-shoulders pattern.
- The digital asset lost a critical support level, adding credence to the bearish outlook.
- The cryptocurrency market is under significant consolidation.
The entire cryptocurrency market suffered a deep correction, losing $310 billion in market capitalization over the past three days. The momentum has clearly shifted in favor of the bears, and ENJ is on the verge of another leg down.
Enjin Coin price could be in big trouble
On the 1-hour chart, ENJ had a breakdown from a head-and-shoulders pattern formed in the past 48 hours. The neckline support was formed at $2.33, and the digital asset is trading at $2.26 at the time of writing.
ENJ/USD 1-hour chart
The price target of this breakdown is a low of $1.91. Additionally, the number of whales holding between 1,000,000 and 10,000,000 has sharply dropped from 62 to 57 in the last three days, indicating that large holders are profit-taking and do not believe ENJ will bounce back up.
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ENJ Supply Distribution
On the daily chart, ENJ bulls have managed to keep the digital asset above a crucial support trend line that coincides with the 50% Fibonacci retracement level. A bounce from this point could quickly drive Enjin Coin price toward the 61.8% level at $2.6.
ENJ/USD daily chart
There is not a lot of resistance ahead if ENH bulls can defend this key level. A breakout above $2.6 could even push ENJ to $3.2.
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