ENJ/USDT | Long-Term Technical Analysis on the Weekly Timeframe

Overview: ENJ is currently trading within a well-defined descending channel (yellow trendlines), reflecting a long-term downtrend since its all-time high. This channel offers key insights into historical price action and potential future movements. After touching the bottom boundary multiple times, ENJ is showing signs of momentum for a potential breakout. Key Levels and Observations: 1. Descending Channel: • Price remains within the channel, bouncing between resistance (top) and support (bottom). • A breakout above the upper boundary would confirm a potential trend reversal. 2. Support and Resistance: • Support Levels: $0.22 (bottom of the channel) and $0.12 (critical historical low). • Resistance Levels: $0.34 (channel resistance) and $3.42 (major breakout target). 3. Volume Profile Analysis: • Significant volume buildup within the $0.22–$0.34 range suggests strong liquidity in this area, acting as a base for the next move. • A breakout could target higher-volume nodes at $1.30, $3.42, and beyond. 4. RSI Analysis: • RSI is recovering from oversold territory, currently sitting at 38.69, signaling growing bullish momentum but still with room for upside. 5. Projection: • A confirmed breakout above $0.34 targets $3.42, which aligns with historical resistance and key volume levels. • If momentum continues, higher targets could be achieved in the long term. Trade Setup (Potential Long Idea): • Entry: Consider entering after a confirmed breakout above $0.34 with strong volume. • Stop-Loss: Set below the recent swing low at $0.22 to limit downside risk. • Take-Profit Levels: • TP1: $1.30 (interim resistance). • TP2: $3.42 (major breakout target). • TP3: $4.79 (longer-term resistance). Risk Factors: • A failure to break the $0.34 resistance could lead to further consolidation within the channel. • Watch for rejection at key levels and decreasing volume during attempted breakouts. Conclusion: ENJ presents an exciting long-term opportunity with its structured channel and volume profile suggesting accumulation. A breakout above the key $0.34 resistance could trigger a significant trend reversal, offering targets up to $3.42 and beyond. Keep an eye on volume and RSI for confirmation of bullish momentum. What are your thoughts on this setup? Let’s discuss in the comments!