Following the strong buy short rally upwards, Enigma found the top at 56k sathoshi. The correction down followed and while the second wave ended, ENG/BTC found the support at 127.2% Fibonacci retracement level applied to the corrective wave up after the ascending channel breakout.
However, currently, price found the resistance at 50% Fibonacci retracement level and rejected the upper trendline of the descending channel. This brings uncertainty in further price development of Enigma.
In order for Enigma to continue the uptrend, the 41k resistance area must be broken, prior to that, the risk of the downtrend continuation remains high. Price could go back to the 22k satoshi support and perhaps slightly lower to test the lower trendline of the descending channel.
However, currently, price found the resistance at 50% Fibonacci retracement level and rejected the upper trendline of the descending channel. This brings uncertainty in further price development of Enigma.
In order for Enigma to continue the uptrend, the 41k resistance area must be broken, prior to that, the risk of the downtrend continuation remains high. Price could go back to the 22k satoshi support and perhaps slightly lower to test the lower trendline of the descending channel.
Trade closed: target reached
Comment:
Downside target almost reached, reversal could take place shortly
Comment:
target reached