Many meta-universe-themed assets in the cryptocurrency market have seen significant gains since Facebook announced that it would change its name to Meta and focus on building virtual reality worlds. NFT-focused projects Enjin and Immutable X are the latest to benefit from the meta-universe.
Enjin pulled back
Enjin hit a new seven-month high today amid growing interest in the metaverse and NFT-related digital assets.
The NFT coin could now provide a buying opportunity for stranded investors to re-enter the market before entering price discovery mode.ENJ has enjoyed a 54% bullish rally over the past four days. It climbed from a low of $2.55 on Nov. 16 to a high of $3.91 earlier today. While many leading assets have suffered sharp corrections this week, ENJ continues its uptrend and is close to retesting its previous all-time high of $3.94.
Demand for meta-universe and NFT-related coins has increased since Facebook announced its name change to Meta in late October. Other notable gainers in the market include Decentraland’s MANA and The Sandbox’s SAND.
The Tom DeMark (TD) sequence indicator has now put out a sell signal on the daily chart of Enjin Coin. The bearish formation has developed into a green Nine candlestick, which suggests a one to four four-hour candlestick correction before the uptrend resumes. A spike in profit-taking could validate the short-term pessimistic outlook.
In this particular scenario, ENJ could break through the $3.62 support level and test the $3.40 to $3.20 wall of demand. This important area of interest may be able to slow the uptrend and become an opportunity for traders to re-enter the market.
As long as the $3.40 to $3.20 level holds, ENJ could rally and make new history around $4.30 to $4.50.
Immutable X could see a brief correction
Immutable X seems destined for a profit-taking spike after the sharp rally of the past few days.
IMX’s market cap has soared 70% since November 16, reaching a new all-time high of $8.70 today. The milestone caught many investors by surprise, as other cryptocurrency markets experienced sustained losses during the same period. Now that the token is in price discovery mode, it could face a brief correction before advancing further.
On the four-hour chart of IMX, the TD setup has flashed a sell signal in the form of a green nine candlestick. Increasing selling pressure around the current price could push the Immutable X towards the 78.6% or 61.8% Fibonacci retracement levels. Key support areas are located at $7.90 and $7.30, respectively.
The $7.30 support level could serve as a “maximum pain” point for a potential correction. Given the strength of the uptrend IMX is experiencing, price could bounce back quickly after a brief correction. Rising buying pressure at $7.30 could take Immutable X towards a new all-time high of $9.70 or even $10.20.