Enjin's recent surge in value has sparked hopes of another potential increase in the short-term. However, despite the rally, the altcoin's internal structure remains uncertain. The price action at the start of this week showed a swing failure pattern, indicating that the rally may not be sustainable.
The 4-hour chart analysis suggests that Enjin's retracement is not yet over, and it could potentially drop to $0.042 or even below $0.04 if support levels are broken. The recent rally resembled a liquidity sweep more than a structural shift, which means that the price may continue to fluctuate in the short-term.
Despite these concerns, Enjin's mid-April rally has set up the potential for another rally in the future. However, traders should remain cautious and wait for a cleaner structural break before making long positions. A move beyond the local high of $0.0536 is needed to bring about such a change.