Immutable (IMX), the Ethereum Layer-2 solution, is making waves today with a significant price surge, emerging as one of the top-performing altcoins.
Currently priced at $1.24, IMX has seen a 10.06% increase in the past 24 hours. This analysis delves into the factors behind this surge and what to expect in the near future.
Holders Demonstrate Strong Commitment to Immutable
Data from the Exchange Onchain Market Depth, which tracks trading activity across the top 20 exchanges, shows a notable rise in buying pressure for IMX. According to IntoTheBlock, buyers are prepared to acquire nearly seven million IMX tokens at the current price, while sell orders exceed five million tokens.
Typically, when buy orders surpass sell orders, it indicates that buying pressure is outstripping selling volume. Conversely, a higher volume of sell orders compared to buy orders would suggest a seller-dominant market.
Immutable Exchange Onchain Market Depth. Source: IntoTheBlock The current imbalance, favoring buyers, could potentially drive IMX’s price higher if this trend continues.
Moreover, the Coins’ Holding Time data reveals a 32% increase in the number of IMX holders choosing not to sell over the past 30 days. A rising Holding Time suggests a growing confidence among holders, as it indicates fewer transactions or sales of the cryptocurrency.
Immutable Coins Holding Time. Immutable Coins Holding Time. Source: IntoTheBlock This trend has been observed over the past 30 to 90 days, with significant growth during this period. Generally, reduced liquidation of holdings is a positive indicator for cryptocurrencies.
If this trend persists and is supported by increasing buying pressure, IMX’s price may continue its upward trajectory. Currently, 62% of IMX holders are at a loss, so a continued positive trend could reduce these losses.
IMX Price Outlook: Not Yet Time to Take Profits
The daily chart shows that IMX is nearing a previous support zone between $1.26 and $1.30. The last time it reached this level was on July 21, leading to a subsequent price increase to $1.70.
At present, the Awesome Oscillator (AO), a tool for measuring momentum by comparing short-term and long-term price movements, is negative but displaying green histogram bars. When the AO crosses above zero, it signals bullish momentum, while readings below zero indicate bearish conditions. This indicator can help pinpoint potential entry and exit points.
Immutable Daily Analysis. Immutable Daily Analysis. Source: TradingView For IMX, the presence of continuous green bars in negative territory suggests a potential shift from bearish to bullish momentum, which could act as a buy signal. However, this could reverse depending on market supply and demand.
If demand continues to rise, IMX could test resistance at $1.51. Conversely, if demand weakens, the price might drop towards $1.07.
Disclaimer
This analysis is intended for informational purposes only and should not be taken as financial or investment advice. Market conditions can change rapidly, so always conduct your own research and consult with a financial professional before making any investment decisions. Please review our updated Terms and Conditions, Privacy Policy, and Disclaimers.
