Enjin Coin Plummets 6%, Buyers Exhausted and Short Selling Pours In, 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 level and sinking 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 more than 6% over the past two days, pushing 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, while momentum indicators are also fading, strongly warning of further downside risk.

Enjin Coin is currently taking a breather after a sharp rise earlier this month. However, according to data from crypto analytics firm CryptoQuant, this pause is not a simple rest but suggests 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 sentiment in the derivatives market is also unusual. According to CoinGlass data, Enjin Coin's long/short ratio fell to 0.77 on Tuesday, marking its lowest level in over a month. A ratio below 1 indicates that traders betting on a decline in asset prices significantly outnumber buyers, clearly demonstrating strong market pessimism.

From a technical perspective, Enjin Coin is consolidating above its 50-day, 100-day, and 200-day exponential moving averages, which are 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) remaining below the zero line suggests a slowdown in upward momentum, making it too early to feel secure.

If the decline deepens, the first support level is formed at the 38.2% Fibonacci retracement level of $0.050, 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 the 50% Fibonacci retracement zone of $0.066, it could enter a full recovery phase, targeting $0.081. If it fails to break this resistance, Enjin Coin is expected to remain trapped in a narrow trading range for some time, continuing a tedious 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.*