Breakout And Retest: IMX Price Surges by 300% with High Volume
Immutable (IMX) price has been in a steady decline since March, facing resistance from a descending trendline. However, the bearish trend appears to have come to an end around the $1 mark. Recently, the price experienced a breakout from the trendline and a successful retest.
For the past few months, IMX has been trading between $1 and $1.60, forming an inverted head and shoulder pattern at the bottom. This pattern could potentially attract buyers, and if the neckline is broken, it can lead to a boost in momentum. The outcome of this retest is worth exploring.
At press time, IMX crypto is trading at $1.36, showing a decline of 1.86% in the past 24 hours. The market capitalization stands at $2.19 billion, and the 24-hour trading volume has surged by 300% to reach $103.24 million.
Analyzing the technical chart, IMX price has followed a falling wedge pattern, triggering a breakout and retest. After the retest, the price saw a 20% gain within a few hours, surpassing the 20-day exponential moving average (EMA). It is now heading towards the 200-day EMA.
Assuming the price successfully surpasses the 200-day EMA, a bullish trend can be expected. The price reaching the $2 territory would be a positive signal, with potential for long-term bullishness. It is projected that IMX will recover its losses for the year after breaking through the 200-day EMA.
Alternatively, this breakout could turn into a fakeout if the price slips below the 20-day EMA. In such a scenario, buyers who entered at the breakout level might get trapped, leading to enhanced selling pressure. Once the price trades below the psychological level of $1, it could potentially reach a new all-time low.
RSI indicators exhibit a bullish divergence, supporting the positive outlook. The fact that IMX price has surpassed the 20-day EMA and is heading towards the 200-day EMA further strengthens the bullish case.
According to JAVON MARK (@JavonTM1), IMX crypto has the potential for extraordinary performance. In a previous rally, the price surged by 378% and is currently holding some gains after the correction phase. Chart analysis suggests that the IMX price may achieve another 243% increase after this correction phase, with potentially more significant intensity than before.
Based on this analysis, IMX price has experienced a significant breakout and retest, accompanied by a surge in volume. Technical indicators point towards a bullish trend, with the potential for surpassing the 200-day EMA and entering a long-term bullish phase.
However, it is crucial to closely monitor the price, as a slip below the 20-day EMA could indicate a potential fakeout. This would result in strong selling pressure and may lead to new lows for the price.