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What Caused the 40% ImmutableX (IMX) Price Increase Today?

2 mins
Updated by Ryan Boltman
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In Brief

  • The IMX price is in the process of breaking out from a descending wedge. Doing so could accelerate the rate of increase towards $1.
  • Despite the increase, the breakout has not been confirmed yet. This is because the price has failed to sustain the upward movement.
  • A daily close below the wedge's resistance line can cause a 25% drop, while a close above the line can cause the price to increase by 55%.
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The ImmutableX (IMX) price increased considerably today, reaching a high of $0.77. At one point, the upward movement was 40% relative to the price at the beginning of the day. 

However, the increase could not be sustained, and IMX is at risk of invalidating a breakout from a descending resistance line.

Will IMX Price Break Out From Resistance?

The IMX price has fallen inside a descending wedge since reaching a yearly high of $1.59 on March 18. The descending wedge is considered a bullish pattern, meaning that an eventual breakout from it is the most likely future price scenario. 

The decrease ended on September 12, when the cryptocurrency bounced (green icon), validating the $0.50 horizontal area as support. The bounce was especially interesting since the price did not fall to the wedge’s support line. This is considered a sign of strength. 

The price has increased since the breakout and accelerated its increase on September 21. While IMX reached a high of $0.77, it failed to sustain its increase. Rather, it created a long upper wick and is now at risk of falling below the wedge’s resistance line, hence invalidating the breakout.

If this were to occur, IMX would likely return to the $0.50 support area, a drop of 25% measuring from the current price. On the other hand, if the breakout gets confirmed, IMX can increase to the $1 resistance area.

The 0.5 Fib retracement resistance level creates the resistance but is also a horizontal resistance area. This would be an increase of 55%.

ImmutableX (IMX) Price Breakout
IMX/USDT Daily Chart. Source: TradingView

The daily RSI is bullish. When evaluating market conditions, traders use the RSI as a momentum indicator to determine if a market is overbought or oversold and to decide whether to accumulate or sell an asset.

If the RSI reading is above 50 and the trend is upward, bulls still have an advantage, but if the reading is below 50, the opposite is true. The indicator is increasing and is above 50, both considered signs of a bullish trend.

IMX Price Rejection Leads to Descent

Similarly to the daily timeframe, the six-hour one does not confirm the validity of the breakout, hence failing to give a decisive IMX price prediction.

On the bullish side, IMX has broken out from a short-term descending resistance line. This is a positive sign. However, the price was rejected by the 0.618 Fib retracement resistance level at $0.71 (red circle). The 0.618 Fib level often acts as the top during upward movements. Therefore, IMX has to reclaim it to confirm that the trend is bullish. 

Furthermore, the RSI is increasing and above 50, but it is also overbought territory. This could be a sign that the local top is in.

IMX/USDT Six-Hour Chart. Source: TradingView

To conclude, the IMX price prediction will determine whether the price breaks out from the long-term wedge and the $0.70 resistance line or gets rejected instead. A breakout can lead to a 55% increase, while a rejection will likely lead to a 25% fall.

For BeInCrypto’s latest crypto market analysis, click here.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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