As the crypto market recovers, Immutable [IMX] has drawn fresh attention from traders. At the time of writing, IMX was up 9.50%, trading at $0.293.
This price gain is fueling expectations of further upside, supported by strong market interest. Trading volume surged 65% to $35.48 million, underscoring active participation.
The combination of rising price and volume suggests that both traders and investors are backing IMX’s current trend.
IMX price action and key level to watch
AMBCrypto’s technical analysis on the daily chart shows that today’s 9.50% gain in the IMX price has successfully formed a bullish cup-and-handle pattern and is now on the verge of a breakout.
Based on the current price action, if IMX’s upside momentum continues and the price breaks above the neckline at the $0.30 level, it could open the door for a further 16% rally toward $0.351 in the coming days.
IMX’s bullish thesis can only be validated if the asset clears the neckline; otherwise, history may repeat, and the price could see a reversal, as it has in the past.
At the same time, the price has already surpassed the 50-day Exponential Moving Average (EMA), with IMX hovering above it, at press time. This indicates that the asset is shifting toward a short-term uptrend and is a bullish sign for IMX holders.
However, the momentum indicator Average Directional Index (ADX), which measures trend strength, has reached 21.17, below the key threshold of 25, indicating weak directional momentum.
Are IMX traders turning bullish?
Besides the price action, data from the derivatives platform CoinGlass indicates that intraday traders are following the current trend.
According to the IMX Exchange Liquidation Map, traders are heavily favoring long-leveraged positions, which continue to rise compared to short-leveraged positions.
At press time, $0.276 on the downside and $0.30 on the upside are the two key levels attracting strong trader interest. Data shows that over the past 24 hours, traders have built $384.44K worth of long positions and $305.85K worth of short positions.
These positions and intraday trader bets indicate that short-term market sentiment is quite bullish. However, $0.30 continues to act as a strong resistance level.
Final Thoughts
- IMX gained 9.50%, positioning itself for a potential 16% rally, though it is currently facing resistance.
- Despite the bullish outlook, the technical indicator ADX suggests that IMX’s current trend remains weak, as its value is below 25.
