Immutable X reverses recovery gains – What now?

Posted: September 28, 2023

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

• IMX clawed back recovery gains in September.
• Sell pressure intensified, denting weighted sentiment. 

Immutable X [IMX], a layer 2 scaling solution focused on NFTs and gaming applications, recorded an impressive recovery in September. On 21 September alone, IMX rallied +20%, hitting a July range high of $0.77. But sellers reversed most of the gains afterward.  

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At press time, the altcoin eased temporarily near $0.5555, shedding over +25% when measured from September’s high of $0.7699. 

Meanwhile, Bitcoin [BTC] defended the range-low but was yet convincingly cross above $26.4k at press time. 

What’s next for IMX price action?

Source: IMX/USDT on TradingView

The red area of $0.681 – $0.705 was a bullish order block (OB) aligned with the July range low before it was flipped to a resistance. The extended price reversal also flipped $0.62 and the 50-EMA (Exponential Moving Average) into hurdles. 

At press time, price action hit the next crucial support of $0.5555. We could see fluctuations between the 50-EMA and $0.5555 support if BTC doesn’t crack below $26k. A retest of $0.62 can only happen if the 50-EMA hurdle is cleared. 

However, an extended drop could hit $0.54 or the H4 bullish OB $0.518 – $0.506 (cyan). The extra decline of RSI towards the oversold zone suggested sellers were firmly in control.  

Besides, the wavering CMF below zero indicated a lack of substantial capital inflow into the IMX market in the past few days. 

Positive weighted sentiment dropped

Source: Santiment

The massive rally on 21 September was followed by an uptick in positive weighted sentiment that graced March levels. 

How much are 1,10,100 IMXs worth today? 

However, the intensified selling pressure that ensued, as shown by an increase in Supply in Exchange, dropped weighted sentiment close to the neutral level at press time. 

In addition, the Network Growth dipped, indicating an extra decline in network traction that could further limit a strong move upward in the short term.