ImmutableX (IMX) Price Analysis: Falling Wedge Pattern Hints at Potential Reversal

Last week, ImmutableX (IMX) Price showed a steady rise in gains; intraday gains were 7% until press time. Meanwhile, the 24-hour volume of the spot was up by35% to $46.397 Million.

ImmutableX (IMX) price showed promising gains on Friday. The token price surged over 7% in the last 24 hours and traded at $0.98 at press time. Spot volume also showed a surge of 35% to reach $46.397 million.

The token ranked 38th among cryptocurrencies globally, with a market cap of $2.081 billion. Out of the maximum supply, 78.64% of IMX tokens were circulating in the market at the time of writing.

The total supply of the token stood at 2.0 billion tokens, leading to an FDV of $2.645 billion from the current price.

Derivatives Data Offers Insights into IMX Price Movement

Data from derivatives exchanges showed a strong increase in demand for IMX. The volume of derivatives rose by 80.51% in the last 24 hours.

Furthermore, there was a surge in demand, as evident in the net 6.41% more contracts that opened into the IMX market. This brought the total open interest to $32.04 million.

Following the derivatives data, the token witnessed higher short liquidations in the last 24 hours. An amount of $134.01K was liquidated in shorts, as opposed to $17.44K in longs.

Onchain Analysis Provides In-Depth View of IMX Holder Dynamics

Analyzing on-chain metrics revealed a shift in token accumulation, as total exchange outflows, indicating withdrawals to wallets, surged to $3.51 million. In contrast, deposits to exchanges, as measured by exchange inflows, slowed to $2.76 million over the past seven days.

As the token price experienced recent surges, holders’ positions improved. Active addresses rose to 616 at press time, and the recent transaction volume showed a surge with 9.17 million IMXs being transacted. Notably, investors held on to IMX for an average of 1.2 years.

Moreover, 78.09% of whale holders own 1.56 billion IMX tokens. As per financial data, 29.51K addresses are in the money or in profit, making 35.71%. However, the earlier downtrend still had an effect, as 60.05% (49.63K addresses) are currently at losses.

Technical Analysis of ImmutableX (IMX) Price: Bearish Trend Prevails, Falling Wedge May Hint at Potential Reversal

ImmutableX (IMX) price has been on a consistent downward trajectory for the past five months, a trend that is visually depicted by a series of lower lows on the price chart. This extended bearish price action highlights the prevailing influence of sellers in the market.

During this period, IMX has formed a falling wedge pattern. While falling wedges are generally considered bearish patterns, they can also signal a potential reversal if the price breaks out to the upside.

Should the IMX token price break above the falling wedge with substantial increases in trading volume, it could signify the start of a bullish reversal. Such a breakout might indicate a shift in market sentiment, potentially leading to a substantial upward movement in the token’s price.

Currently, technical indicators on the IMX token’s daily chart reflect a strong bearish trend. The 50-day and 200-day EMAs have been declining, culminating in a death cross, extending the ongoing downtrend.

The MACD and its signal line have been persistently negative, highlighting continued weakness in the token’s price. Additionally, the RSI has stayed below the 50 level, with the 14-day SMA overlapping it. At the time of writing, the RSI was at 44.51, suggesting a lack of bullish momentum and ongoing bearish sentiment.

Potential support levels for the IMX token are $0.511 and $0.901, while resistance is $1.610 and $2.601.