Enjin Coin/Tether Market Overview for 24-Hour Trading

Summary
• Price action saw a bearish reversal from 0.03861 to 0.03795 with consolidation near 0.0381.
• Volatility expanded as the RSI edged toward oversold levels, hinting at potential bounce.
• Volume surged during key breakdowns, reinforcing bearish momentum in the session.

The 24-hour price action for Enjin Coin/Tether (ENJUSDT) opened at 0.0386 and closed at 0.0382 by 12:00 ET, with a high of 0.03861 and a low of 0.0178. The pair experienced significant intraday bearish movement, with price falling sharply from 0.0382 to 0.03605 between 20:30–22:00 ET. Total volume for the session was 24,464,958.8, and notional turnover reached approximately $921,032.5 (assuming 1 ENJ = 0.0382 USDT at close).

On the 15-minute chart, the price formed multiple bearish patterns including a bearish engulfing at 19:30 ET and a morning doji at 02:30 ET. The 20-period and 50-period moving averages were closely aligned, signaling a potential trend reversal. The 50-period line currently sits just above the 0.0375 level, acting as a potential floor or support zone.

MACD and RSI Momentum

The MACD crossed below zero during the early afternoon, confirming bearish momentum, while the RSI dipped to 28 by 06:00 ET, suggesting the price may be near an oversold level. However, the slow stochastic RSI showed divergence, indicating caution for short-term bounce scenarios. The price has yet to show a convincing reversal, with bearish volume confirming the trend continuation.

Bollinger Bands and Volatility

Bollinger Bands widened significantly between 20:30–21:30 ET during the sharp pullback to 0.03605, showing increased volatility. Price is now consolidating near the lower band, suggesting potential for a rebound or retest of key resistance at 0.0382.

Volume and Turnover

Volume spiked at key breakdown points, particularly between 20:30–21:45 ET, where over 4 million ENJ changed hands. Turnover confirmed the volume, with a large portion of the notional value concentrated during the 4–5-hour breakdown period. No significant divergence was observed between price and turnover, suggesting a strong conviction in the bearish move.

Fibonacci Retracements

Applying Fibonacci levels to the most recent 15-minute swing from 0.03861 to 0.03795, the 38.2% retracement is at 0.03828 and the 61.8% at 0.0382. Price is currently hovering just below the 61.8% level, indicating potential support if the trend continues. On the daily chart, the 61.8% retracement of the larger move from 0.0386 to 0.03605 is at 0.0373, aligning with the current consolidation area.

Backtest Hypothesis

To evaluate the effectiveness of shorting following bearish engulfing patterns on ENJ/USDT, two approaches can be employed. The event-study method would identify every instance of a bearish engulfing pattern since 2022 and analyze the average returns over the next 1, 3, and 5 days, effectively mirroring the expected performance from the short side. Alternatively, a “pseudo-short” strategy could flip the sign of long-position returns to simulate short-side performance. Both methods depend on accurate identification of the bearish engulfing patterns, which appear to occur multiple times in this 24-hour window, offering a solid starting point for backtesting.