(ENG/BTC) Looking For Support Ahead Of Testnet Launch Soon By Cryptovest

Enigma Technical Analysis: (ENG/BTC) Looking For Support Ahead Of Testnet Launch Soon

It is widely regarded that privacy coins and particularly privacy on the blockchain, is paramount in ensuring the future adoption of blockchain technology in the mass market.

With the vast majority of privacy coins out there today focusing largely on anonymous transactions, Enigma is one of the only crypto-projects on the market that’s building a network to enable users to compute over encrypted data and ‘secret’ smart contracts. Privacy for your data.

The project’s testnet is due to go live soon over Q2, according to the official Enigma roadmap, with some rumours circulating of June 15th but we can’t know for sure. Let’s look at the chart to see what we could expect in the run up to this next announcement.

Over 30min candles ENG has been holding pretty well inside a bullish flag pattern, between the two dotted white lines.

Towards the end of this flag activity, ENG made a strong bullish break above the resisting trend line but was unable to sustain that level of support for long. After quickly correcting the asset fell into a bearish descending triangle (yellow) before falling even further below the flag pattern support.

Once it found the bottom at 24,000 Sats, ENG token was able to quickly retrace back towards the channel support, where it is at now.

ENG Going Forward

Looking at the 200 and 1,200 EMA (red and yellow lines, respectively) we can see the two averages are heading towards a bullish convergence again, after temporarily diverging from the recent bear market we’ve experienced over the past 2 days. Once these lines crossover it should signal a strong bullish continuation for this asset.

Right now the asset is consolidating against the white dotted line, which for now is acting as a strong resisting level. Momentum indicators over the short-term however, are favouring sellers right now with moving averages on the MACD about to dive below the signal line and RSI showing a steep decline towards the lower quartile of the index channel.

The price action is also looming close towards breaking bearishly through the kumo cloud on the ichimoku indicator, as well as a bearish T/K-Sen crossing.

This tells us that we should expect ENG to decline further before anticipating a return to the flag channel. The Enigma team will need to market the launch well in order to grab investor attention as the date approaches.

Once it finally does surpass the white dotted line, it will need to break through the 1st interior channel resistance (lowest blue area) that will be around 29,000 Sats before continuing it’s uptrend.

After it returns inside the central channel, we could see the price continue to oscillate as it has been since mid-April, before larger support gathers ahead of the testnet launch.
The next resisting level inside the central channel has been a historically strong resisting level in this flag pattern, holding down the bulls in earlier runs. It’s predicted that ENG will meet this level next at around 33,000 Sats.

A break above this level will place the price action inside the breakout zone, near the 34,000 Sats mark. Overall this climb will deliver a 25.90% ROI from its current price at 27,000 Sats.

As the Enigma project is still largely unknown in the wider crypto community, it’s uncertain how far the token could breakout once it reaches this stage. With a current valuation of $2.04, a relatively small total coin supply of 150,000,000, a highly comprehensive whitepaper and a team packed with MIT graduates, it really is one of the more undervalued coins in the crypto market today.

This article appeared first on Cryptovest

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