NFT Tokens Get Ready for Another Leg up – CHZ, ENJ

Chiliz (CHZ) is in the process of breaking out from a long-term descending parallel channel.

Enjin Coin (ENJ) has broken out from an ascending parallel channel and validated it as support afterwards.

Small Love Potion (SLP) is trading inside a descending wedge.

CHZ

CHZ has been decreasing inside a descending parallel channel since March 12, when it had reached an all-time high price of $0.945 on March 12. Descending parallel channels usually contain corrective structures.

On May 22, it bounced after reaching the support line of the channel. It has been increasing since. 

Currently, it is trading right at the resistance line of the channel. 

Technical indicators are relatively bullish. While the MACD is decreasing, it is still positive. Furthermore, the RSI has generated hidden bullish divergence and the Supertrend line is bullish.

The wave count indicates that CHZ initiated a bullish impulse on March 2020. If correct, the movement inside the channel was part of wave four, while the ongoing bounce is the fifth and final wave. 

The two most likely targets for the top of the upward movement are at $1.11-$1.14 and $1.69. The former is found by using an external Fib retracement on wave four (black) and the 1:1 projection of wave 1-3 (orange), while the latter is found using the 1.61 projection of waves 1-3.

Highlights

• CHZ is trading inside a descending parallel channel.
• It is potentially in wave five of a bullish impulse.

ENJ

ENJ has been increasing alongside an ascending parallel channel since July 20. On Aug. 23, it managed to break out and validated the channel as support three days later (green icon). 

Despite showing some weakness, technical indicators are still bullish. The MACD is positive and the RSI is above 50. 

The closest resistance area is at $2.75. This is both a horizontal resistance area and the 0.618 Fib retracement resistance level.

The wave count suggests that ENJ is in wave five of a bullish impulse that began in March 2020.

The two most likely targets for the top of the entire bullish impulse are at $4.70-$4.90 and $7.1. The former is found by using the 1.27 external Fib retracement on wave four (black) and the 1:1 projection of wave 1-3 (orange). The latter is found with the1.61 projection of waves 1-3.

Highlights

• ENJ has broken out from an ascending parallel channel.
• It has completed a fourth wave pullback.

SLP

SLP has been decreasing inside a descending wedge since July 13, when it had reached a high of $0.41 (red icon). On Aug. 31, it reached a low of $0.11. The low was made at both the horizontal support area of $0.115 and the support line of the wedge. 

While the descending wedge is considered a bullish pattern, technical indicators do not provide any bullish reversal signs.

If a breakout occurs, the next resistance would be at $0.22.

Highlights

• SLP is trading inside a descending wedge.
• There is support at $0.115.

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.