IMX price rallied for the fourth straight day as investors continued to move their holdings off exchanges as a bullish reversal pattern formed on the weekly chart.
Summary
- IMX price hit an 8-month high of $0.86 today.
- The token’s supply on exchanges has dropped over the past month.
- Technicals are flashing early signs of a bullish reversal in the making.
According to data from crypto.news, ImmutableX (IMX) price rose 28% to an 8-month high of $0.95 before it settled at $0.86 at the time of writing. At this price, the token is up nearly 100% above its monthly lows and 160% from its year-to-date low.
The daily trading volume for IMX has doubled over the previous day, a sign of robust demand from traders.
IMX’s gains come amid an ongoing trend of investors moving their holdings off exchanges. Notably, the token supply on exchanges has decreased from 267 million at the beginning of September to around 253 million at press time, according to data from Nansen.
Source: Nansen
As more investors withdraw their holdings from exchanges, the circulating supply of the token drops. This could reduce selling pressure on the token while also signalling a strong commitment from existing holders, factors that could support its gains ahead.
Investor attention has also turned toward IMX after the Immutable team announced a partnership with Netmarble, a leading South Korean mobile game developer and publisher, last week.
The partnership has enabled developers building on Immutable to integrate with hit mobile titles like Solo Leveling: ARISE, Seven Knights, and Marvel Future Fight, allowing them to earn rewards, access new audiences, and leverage Netmarble’s global reach.
Market experts expect the development will strengthen Immutable’s presence in the mainstream gaming sector and further enhance the utility and demand for the IMX token.
On the weekly chart, IMX price has confirmed a breakout from a double-bottom that has been forming since the beginning of this year. Following the token’s recent rally, IMX has broken out of the pattern, a development that could bring more gains for the token in the short term.
IMX price has broken out of a double-bottom and a larger-scale falling wedge on the weekly chart — Sep. 19 | Source: crypto.news
Zooming out the chart, it also appears that IMX confirmed a breakout from a multi-year falling wedge pattern, which had been formed as the token price action made lower highs and lower lows, connecting which forms two converging trendlines. In technical analysis, a breakout from this pattern typically leads to a reversal trend from bearish to bullish.
The setup on IMX is increasingly shaping up like the early stages of a bullish reversal, with the double-bottom breakout suggesting that sellers have lost their grip and the multi-year falling wedge giving way, the token is showing signs of shifting from a prolonged downtrend into an uptrend.
The key now is whether IMX can hold these breakout levels as support; if it does, that would strengthen the case that this move is not just a short rally but the foundation for a sustained reversal.
Based on this setup, the next likely target for IMX is $1.31, a projected level calculated by adding the depth of the double bottoms formed and adding it to the level at which the token broke out of the pattern. The target set by the falling wedge pattern stands much higher, at $2.70, which is up nearly 229% from the current price level.
A drop below $0.82, the neckline level of the double bottom, would, however, invalidate this price prediction.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
