Enjin Coin/Tether (ENJUSDT) Market Overview

• Price declined sharply on high volume after forming a bearish engulfing pattern near 0.0655
• Volatility increased during the overnight session, with a 6.6% drawdown from the 24-hour high
• RSI and MACD signal weakening momentum and potential oversold conditions near 0.0625
• Price remains below key moving averages, with 0.0646 acting as a short-term support level
• Bollinger Band contraction observed before the recent drop, hinting at a possible breakout

At 12:00 ET on 2025-10-04, Enjin Coin/Tether (ENJUSDT) opened at 0.065, reaching a high of 0.0663 and a low of 0.0616 before closing at 0.0619. The pair saw a total volume of 13,913,923.7 units and a notional turnover of 874,216.1 USD over the 24-hour period. The price action reflects a bearish reversal, with a notable bearish engulfing pattern and a sharp decline from earlier highs.

Structure & Formations

The 15-minute candlestick chart reveals a bearish reversal pattern at the 0.0655 level, where a bullish candle was followed by a larger bearish candle forming a bearish engulfing pattern. This signaled a potential shift in sentiment. A key support level appears to be forming around 0.0625–0.0626, as the price found support there multiple times during the overnight session. A notable bearish divergence is visible in the 0.0635–0.0645 range, where the price made higher highs but lower lows in volume and momentum.

Moving Averages

On the 15-minute chart, the 20-period moving average (SMA 20) is currently below the 50-period line, indicating a bearish bias in the short term. The daily chart shows the price trading well below both the 50 and 200-period moving averages, reinforcing a long-term bearish trend. The 100-period moving average also appears to be acting as a resistance level around the 0.063–0.064 range, which has been tested multiple times without a breakout.

MACD & RSI

The MACD line has moved below the signal line and remains in negative territory, suggesting continued bearish momentum. The histogram has been shrinking, which may indicate a loss of bearish strength. Meanwhile, the RSI is approaching oversold territory (below 30), hinting that the price may be due for a short-term rebound. However, the slow RSI also shows no signs of reversal, indicating that the bearish trend could persist.

Bollinger Bands

Bollinger Bands show a contraction before the recent sharp drop, which often precedes a breakout. The price has since moved outside the lower band, suggesting increased volatility and a bearish continuation. The width of the bands has widened significantly in the past 8 hours, aligning with the sharp decline from 0.064 to 0.0616. This expansion indicates a potential continuation of the downward move, with the next level of support likely around 0.061–0.0615.

Volume & Turnover

The volume profile shows a significant spike during the overnight Asian and European sessions, particularly between 02:00 and 04:00 ET. This coincided with the 6.6% drop in price. Notional turnover also surged during this period, confirming the strength of the bearish move. A divergence appears in the 0.063–0.064 range, where the price made a high but the volume and turnover declined, indicating weakening bullish conviction.

Fibonacci Retracements

Applying Fibonacci retracements to the recent 15-minute swing from 0.0643 to 0.0616, the 38.2% level is at 0.0629 and the 61.8% level at 0.0622. The price briefly tested the 38.2% level before breaking through to the 61.8% level and beyond. On the daily chart, Fibonacci levels from the broader 0.0663 high to 0.0616 low suggest a potential rebound around 0.0625–0.0626, which has been a repeated support zone.

Backtest Hypothesis

The backtest strategy under consideration involves a short entry at the close of the bearish engulfing pattern on the 15-minute chart, with a stop-loss placed just above the 0.0655 level and a take-profit target at the 61.8% Fibonacci retracement at 0.0622. The strategy aims to capitalize on the bearish momentum confirmed by the MACD and RSI indicators, as well as the volume divergence during the 02:00–04:00 ET period. Given the strong alignment of technical indicators and price structure, this setup presents a high-probability short-term bearish trade, though traders should remain cautious of a potential bounce from the 0.0625–0.0626 support zone.