Price Prediction: Can ImmutableX (IMX) Sustain its Remarkable 40% Overnight Surge for a Potential New Yearly High?

21 Sep 2023 by Crypto Presale 2 min read

While other cryptocurrencies were crashing to new lows, ImmutableX rallied by over 35% from $0.55 to $0.8 in the last 24 hours. IMX has increased by 33% in the last 7 days and returned an impressive 38% year to date.

The exact catalyst behind this recent price upswing remains somewhat uncertain. However, on-chain data suggests that whales have been steadily accumulating IMX tokens. Furthermore, ImmutableX has been actively introducing new initiatives, such as the zkEVM protocol in August, which has garnered significant attention within the market. These factors may be contributing to IMX's recent positive performance.

Technical Analysis

Daily Timeframe

Source: TradingView

Immutable X experienced a significant rally earlier this year, breaking several resistance levels and reaching a new high around the $1.6 range, following a climb from its 2022 low near $0.37. However, the token's value has since undergone a gradual decline, slipping from $1.6 in March to below $0.5 in August, resulting in the loss of much of its earlier gains. Now, there are signs of a revival as IMX has surged by nearly 40% in the past 24 hours.

On the daily chart, the current daily candle is trading above the 50-day EMA, while the 200-day EMA acts as a dynamic resistance point. A close above these EMAs could indicate a positive trend reversal. Additionally, the RSI is presently at 63%, indicating a strong buying momentum for IMX. If this buying momentum continues, there's a possibility that IMX might breach the $0.9 resistance level, potentially attracting more buyers and driving the price higher.

4 Hour Timeframe

Source: TradingView

In the 4-hour chart, IMX recently broke through the $0.66 resistance level but is now undergoing a pullback. The RSI is currently in the overbought zone, suggesting a potential pullback before the next upward movement. This pullback may be due to some traders taking profits and exiting their positions. However, it could offer an opportunity for new buyers to get in at a lower price. Additionally, IMX is trading above both the 50-day and 200-day EMA, indicating continued bullish strength in this timeframe.

How High Can This Price Rally Reach?

Source: IntoTheBlock

According to on-chain data sourced from IntoTheBlock, there has been a staggering 12,789% surge in whale holdings of IMX over the last 90 days. This significant increase highlights a massive accumulation of IMX tokens among large holders. Such a pronounced accumulation typically signifies a positive sentiment towards the token.

If this bullish pressure persists, it could potentially lead to a substantial price surge for IMX. Provided other economic variables remain constant, IMX might revisit its year high around the $1.6 region and beyond.

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