$5 Million Withdrawal Causes Concerns for Immutable X (IMX) Price
Immutable X (IMX) has faced another setback as a $5 million outflow puts its price under pressure once again. After experiencing a significant decline in the past five sessions, IMX had started to show signs of recovery but is now struggling to stabilize near monthly lows.
Currently trading at around $1.198, IMX has recorded a 2.33% increase intraday. However, recent on-chain data indicates a decrease in Open Interest contracts during the recent sessions.
The decline in Bitcoin’s price, which fell below $60K, has triggered panic among investors and put pressure on altcoins. As a result, Immutable X lost nearly 20% in less than a week. In line with this price drop, futures traders have stepped back from the market. Open Interest contracts have dropped from $28.1 million to $23 million, a decrease of almost 17% over the week. Additionally, around 5.1 million positions have been liquidated recently, suggesting a trend of short-term traders unwinding their positions.
The volume to market cap ratio at 2.24% indicates low volatility in the crypto market. Furthermore, while the 24-hour active addresses have remained relatively constant, the 7-day active addresses have shown a continuous decrease, signaling a decline in user engagement. Active addresses often impact the price positively or negatively, depending on their increase or decrease.
The price action analysis shows a failure on the part of buyers as they attempted a recovery but faced rejections near the 50-day EMA. As a result, the price slumped and erased the recent gains. Currently trading below the 20, 50, and 200-day EMAs, IMX faces the risk of further decline. The $1.1 support level has been acting as recent support, but if broken, it may lead to a new annual low for IMX.
Sellers currently seem to be in control of both the short-term and long-term trend, making it challenging for the bulls to stage a recovery. The relative strength index (RSI) line is at 42.2 points, while the 14-day SMA line is at 54.3 points. A bearish crossover between the RSI and 14-day SMA line reinforces the short-term bearish sentiment.