Immutable X (IMX), a layer 2 scaling solution that concentrates on NFTs and gaming applications, made a remarkable recovery in September. However, a concerning turn of events saw the altcoin reverses recovery gains, raising questions about its future prospects.
Understanding the IMX Recovery
During September, IMX made impressive strides, with a significant rally of +20% on the 21st. This surge saw the altcoin reach a July range high of $0.77. However, the joy was short-lived as sellers stepped in, erasing much of these gains. By press time, IMX had dipped to around $0.5555, reflecting a loss of over +25% from its September high of $0.7699.
What does this mean for IMX?
The price reversal transformed the $0.681 – $0.705 range, a bullish order block that had aligned with the July range low, into resistance. The extended price reversal also turned $0.62 and the 50-EMA (Exponential Moving Average) into hurdles. As of now, the price action has reached the next significant support of $0.5555. If Bitcoin doesn’t fall below $26k, we could see fluctuations between the 50-EMA and the $0.5555 support. A retest of $0.62 is only possible if the 50-EMA hurdle is overcome.
However, if there’s an extended drop, it could reach $0.54 or the H4 bullish OB $0.518 – $0.506. The RSI’s additional decline towards the oversold zone suggests that sellers are firmly in control.
What’s the sentiment around IMX?
The 21st September rally was followed by an increase in positive weighted sentiment. However, the subsequent intensified selling pressure, indicated by an increase in Supply in Exchange, brought the weighted sentiment close to the neutral level. Furthermore, Network Growth has dipped, indicating a potential decline in network traction that could further limit a strong upward move in the short term.
For those interested in tracking the performance of IMX and other cryptocurrencies, cryptoview.io provides a comprehensive platform to monitor market trends. With its intuitive interface and detailed metrics, staying updated on market shifts has never been easier.
