Enjin Coin plummets 6%, buyers exhausted and short selling surges, can it rebound?

▲ Enjin Coin (ENJ)/Source: X

Enjin Coin (ENJ), which saw an explosive rally in early April, is now giving up the $0.059 mark and falling into a deeper correction swamp, pressured by deteriorating on-chain indicators and explicit bearish bets in the derivatives market.

According to investment media FXStreet on April 28 (local time), Enjin Coin has fallen by more than 6% over the past two days, dropping below $0.059 as of Tuesday. This decline is supported by weakening on-chain data and a surge in short positions in the derivatives market, with even momentum indicators fading, strongly warning of further downside risk.

Enjin Coin experienced a sharp rise early this month and is currently in a breather. However, according to data from crypto analytics firm CryptoQuant, this pause is not a simple rest but indicates extreme fatigue among buyers. Both the spot and futures markets show increased activity from retail investors, market overheating, and a dominance of selling pressure, reinforcing a short-term bearish outlook.

The atmosphere in the derivatives market is also unusual. According to CoinGlass data, Enjin Coin's long/short ratio fell to 0.77 on Tuesday, hitting its lowest level in about a month. A ratio below 1 means that traders betting on a price decline of the asset significantly outnumber buyers, clearly demonstrating deep market pessimism.

From a technical perspective, Enjin Coin is consolidating above its 50-day, 100-day, and 200-day exponential moving averages, clustered around $0.040, maintaining a long-term positive bias. The Relative Strength Index (RSI) also hovers around 59, preserving bullish momentum but not reaching overbought levels. However, the Moving Average Convergence Divergence (MACD), which remains below the zero line, suggests slowing upward momentum, making it too early to feel relieved.

If the decline deepens, the primary support level is formed at $0.050, the 38.2% Fibonacci retracement level, and if selling pressure intensifies, it could drop to the 50-day exponential moving average at $0.041. Conversely, if it successfully rebounds and closes a daily candle above $0.066, the 50% Fibonacci retracement zone, it could enter a full recovery phase, potentially reaching $0.081. If it fails to break this resistance, Enjin Coin is expected to remain trapped in a narrow range for some time, continuing a tedious back-and-forth battle.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*