Immutable [IMX] Dominates the Crypto Market as the Top Gainer, With a 17% Increase

Immutable X [IMX] has dominated the crypto market as the top gainer in the past 24 hours, with a 17% increase.

This bullish momentum has persisted for over four weeks, and AMBCrypto's analysis indicates more upside potential as market activity gears up for a further upward move.

Is IMX set for a 68% rally?

IMX broke through a resistance line to the upside, leading to its rally in the past 24 hours.

This breakout is likely the first step toward a much larger rally, as IMX trades within a cup-and-handle pattern, according to market analysis.

Typically, an asset trading within this pattern experiences a rally that mirrors its previous downside movement.

Following this, IMX could see a 68% rally to the upside, reclaiming its $1.064 level. A rally to this level could signal a broader market rally as the overall market gains strength.

Why will a rally happen?

The potential for an IMX rally has intensified due to the high liquidity flow into the market.

This was confirmed by the Money Flow Index (MFI), which remained in the positive zone (50-80), with a press time reading of 72.82.

A reading this high confirmed that liquidity flow into IMX remained strong, adding to the potential for a further rally.

It’s worth noting that when the MFI reaches 80, it indicates that IMX is overbought, and a price correction is likely imminent.

Additionally, the Aroon line indicators remained positive, with the Aroon Up line (orange) staying above the Arron Down line (blue).

The Arron Up was at 35.71%, while the Arron Down was at 0.00%. This confirmed that the uptrend was still in place, and the rally remained intact.

Key fundamentals driving liquidity inflow

The liquidity inflow into IMX is linked to the growth of the NFT applications sector, a category that IMX falls under.

According to Artemis, the NFT application sector is now the third-fastest-growing sector, at 47.6%, following the Bitcoin ecosystem and AI sectors.

This growth shows renewed investor interest, particularly in assets likely to deliver higher returns, with IMX being a top choice.

Continued growth in this sector suggests that IMX will continue to attract liquidity, adding momentum for a potential rally.