Immutable [IMX] has witnessed a notable 12.14% increase over the last 24 hours, soaring to $1.81 and attracting considerable interest from traders.
Approaching the key resistance level of $2, many are speculating whether this upward momentum will propel IMX into a breakout or if a pullback is on the horizon.
Immutable: Is $2 the Next Objective?
IMX has displayed impressive resilience as the Bollinger Bands have expanded, signaling heightened volatility. Currently priced at $1.81, just below the crucial $2 resistance level.
Simultaneously, the Relative Strength Index (RSI) has surged to 75.91, solidifying IMX’s position in the overbought territory.
Therefore, while the bullish momentum remains robust, there is a possibility of a short-term retracement if traders opt to secure their profits.
Nonetheless, the $1.72 support level has proven to be steadfast, providing IMX with a sturdy base to potentially ascend further.
If IMX manages to breach the $2 resistance mark, it might aim for the subsequent significant target at $2.50, potentially initiating a more substantial and sustained uptrend.
Is the Market Turning Optimistic?
Several crucial on-chain indicators indicate mounting interest and activity surrounding IMX, potentially bolstering its upward trajectory.
Transfer volume has skyrocketed by 1,889.05%, exceeding 11.1 million tokens transacted in the past 24 hours.
This sharp escalation signifies a renewed surge in market participation and accumulation, implying a surge in traders’ confidence.
Moreover, the number of active addresses has surged by 11.54%, totaling 1,468 wallets.
This uptick in active addresses underscores an increase in user involvement on the IMX platform, indicating a bullish outlook for the token’s long-term prospects.
Furthermore, transaction activity has risen by 14.29%, with 1,449 transactions recorded in the previous day, further indicating strong demand for IMX.
Are Traders Anticipating Greater Price Swings?
Open Interest in IMX has surged by 21.37%, reaching $46.8 million presently. This upsurge signifies growing speculative interest in the token, with traders speculating on substantial future price movements.
If Open Interest continues to climb alongside price and volume, it could furnish the required liquidity for a breakout above the $2 resistance level.
Will IMX Witness a Breakout?
The recent surge in IMX has positioned the token on the cusp of a potential breakout. With strong price performance, increasing on-chain activity, and rising Open Interest, the momentum appears decidedly bullish.
However, the overbought RSI advises caution in the short term. Should IMX sustain its current momentum and breach the $2 resistance level, it could pave the way for a rally towards $2.50.