Over the past two days, the crypto market has recorded large losses. Bitcoin [BTC] bulls failedto defend the $87k local support, shedding 6.95% from Thursday’s high of $89.3k. The altcoin market has lost 7.98% during this period.
Yet, the $32.2 million market cap L1 token Enso [ENSO] was up 12.57% since the 29th of January. It fell to $1.15, but went against the grain to make a strong rebound on the 30th of January by gaining 51.74% in a day’s trading.
Over the past 24 hours, the altcoin was up 30.8%, and CoinMarketCap data showed a 530% increase in the Enso daily trading volume.
Why the Enso pullback shows bullish health
On the 1-day chart, the RSI has cooled down but remained bullish after ENSO dipped below the $1.298 local support level. The 61.8% Fibonacci retracement level at $1.267 was also breached, but not for long. It can be argued that the quick rebound was a sign of bullish strength.
The sellers were not numerous enough to drive a deep retracement below $1. The OBV was also beginning to climb higher.
Are there bearish undertones
There wasn’t any compelling short-term bearishness based on the price action. The Fixed Range Volume Profile from last Sunday showed that the Point of Control (red) was at $1.45, marking it as a key local support.
Above it, the Value Area High at $1.62 was also a local resistance, with the $1.60-$1.70 having acted as a supply zone in recent days.
Why traders should remain bullish
An ENSO price drop below $1.45 would likely see the altcoin retest $1.3 as support. A drop below $1.30 would indicate bears had the upper hand in the short-term.
A retest of either of these support levels would, therefore, offer a buying opportunity. To the north, the next price targets were $1.60-$1.70, $1.95-$2.0, and $2.45.
Final Thoughts
- Enso continued to show strength while the rest of the crypto market faced sell-offs.
- A drop toward $1.45 and $1.30 would likely be followed by a bullish price reaction.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
