Over the past two days, the crypto market has seen significant losses. Bitcoin (BTC) bulls failed to defend local support at $87,000, losing 6.95% from Thursday’s high of $89.3,000. The altcoin market lost 7.98% over this period.
Still, the $32.2 million market cap L1 Enso (ENSO) token is up 12.57% since January 29. It fell to $1.15, but went against the tide to make a strong rebound on January 30, gaining 51.74% on the day.
Over the past 24 hours, the altcoin is up 30.8% and data from CoinMarketCap showed a 530% increase in Enso’s daily trading volume.
Why Enso’s pullback shows bullish health
Source: ENSO/USDT on TradingView
On the daily chart, the RSI cooled but remained bullish after ENSO fell below the local support level of $1.298. The 61.8% Fibonacci retracement level at $1.267 was also breached, but not for long. It can be argued that the rapid rebound was a sign of bullish strength.
There were not enough sellers to cause a deep retracement below $1. The OBV was also starting to climb higher.
Are there any bearish nuances
Source: ENSO/USDT on TradingView
There has been no convincing short-term downtrend based on price action. Last Sunday’s fixed-range volume profile showed the control point (red) at $1.45, marking it as key local support.
Above, the value zone high at $1.62 was also local resistance, with the $1.60-$1.70 range acting as a supply zone in recent days.
Why Traders Should Stay Optimistic
A decline in ENSO price below $1.45 would likely see the altcoin retest $1.3 as support. A decline below $1.30 would indicate that the 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 massive sell-offs.
- A decline towards $1.45 and $1.30 would likely be followed by a bullish price reaction.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.
