Cryptocurrency

NFT Projects Enjin, Immutable X Soar Despite Market Dip


Key Takeaways

  • The NFT projects Enjin and Immutable X have posted double-digit gains, with Immutable X hitting a new all-time high today.
  • Enjin is up more than 50% over the last four days.
  • Meanwhile, Immutable X has risen by over 70% within the same period.

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Many Metaverse-themed assets in the crypto market have posted significant gains since Facebook announced it would be rebranding to Meta to focus on building out virtual reality worlds. The NFT-focused projects Enjin and Immutable X are the latest to benefit from the strengthening Metaverse narrative. 

Enjin Pulls Back

Enjin hit a seven-month high today amid growing interest in Metaverse and NFT-related digital assets. 

The NFT coin could now present a buying opportunity for sidelined investors to get back into the market before entering price discovery mode. ENJ has enjoyed a 54% bull rally over the last four days. It climbed from a low of $2.55 on Nov. 16 to hit a high of $3.91 earlier today. While many leading assets have suffered a steep correction this week, ENJ has continued its uptrend to come close to retesting its previous all-time high of $3.94. 

Demand for Metaverse and NFT-related coins has increased since Facebook announced its rebrand to Meta in late October. Other notable gainers in the market include Decentraland’s MANA and The Sandbox’s SAND.

The Tom DeMark (TD) Sequential indicator has now presented a sell signal on Enjin Coin’s daily chart. The bearish formation developed as a green nine candlestick, which is indicative of a one to four four-hour candlesticks correction before the uptrend resume. A spike in profit-taking could validate the short-term pessimistic outlook. 

Enjin Coin US dollar price chart
Source: TradingView

Under such unique circumstances, ENJ could break through the $3.62 support level and test the $3.40 to $3.20 demand wall. The significant interest area may be able to slow down the uptrend and serve as an opportunity for traders to get back into the market. 

As long as the $3.40 to $3.20 level holds, ENJ could rebound to make a new all-time around $4.30 to $4.50. 

Immutable X Could Dip

Immutable X appears bound for a spike in profit-taking after incurring significant gains over the past few days.   

IMX has seen its market value skyrocket by 70% since Nov. 16, reaching a new all-time high of $8.70 today. The milestone took many investors by surprise as the rest of the cryptocurrency market incurred sustained losses within the same period. Now that the token has entered price discovery mode, it could face a brief correction before advancing further. 

The TD setup has flashed a sell signal in the form of a green nine candlestick on IMX’s four-hour chart. Increasing selling pressure around the current prices could push Immutable X toward the 78.6% or 61.8% Fibonacci retracement level. The crucial areas of support sit at $7.90 and $7.30 respectively. 

Immutable X US dollar price chart
Source: TradingView

The $7.30 support level could serve as the “max pain” point for the potential correction. Given the strength of the uptrend IMX has gone through, prices could rebound swiftly after the brief correction. Rising buying pressure at $7.30 could send Immutable X toward a new all-time high of $9.70 or even $10.20. 

Disclosure: At the time of writing, the author of this feature owned BTC and ETH.

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