Today's uptick has pushed IMX above its 21-day EMA

Today's uptick has pushed IMX above its 21-day EMA. Combined with these strong trading volumes, this could be interpreted as a buy signal as the downtrend may be reversing.

The price of Immutable X (IMX) has risen by 20% in the past 24 hours as the token continues to recover from the recent market crash.

Today’s uptick has pushed IMX above its 21-day EMA. Combined with these strong trading volumes, this could be interpreted as a buy signal as the downtrend may be reversing.

The token is currently trading within a high-value area where trading volumes have been high. The most relevant support at this point is the $0.360 zone from which the token bounced strongly a few days ago.

During today’s session, IMX rejected a move above its yearly point of control (POC) zone. This is the area with the highest trading volumes. If the market rejects a move above it, it would support a bearish outlook for IMX and this would be nothing more than a news-driven “dead cat bounce”.

However, a decisive break above this level could solidify the thesis that the token is ready to reverse its downtrend.

Momentum indicators show that the uptrend is still strong as the Relative Strength Index (RSI) stands nearly 40% above the signal line while the MACD’s histogram has been going up for 9 days in a row.

If the price breaks above the POC, the next resistance for bulls stands at $0.741 – also a key value area with high trading volumes. If the price rises above this level, we could see IMX doubling its price as bulls will take full control of the price action in areas where trading volumes are much lower.