Immutable [IMX] Homes In on $1 Amid NFT Sector Uptick: Crucial Factors Propelling the Rally
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- IMX skyrockets 17%, hinting at a possible 68% surge.
- Liquidity flood and NFT sector growth drive IMX's relentless ascent.
Over the past 24 hours, the cryptocurrency scene has been turned upside down, with Immutable [IMX] leading the pack as the market's top gainer, jumping an impressive 17%.
This incredible bullish run has persisted for the past four weeks, and our analysis suggests there's more to come as the market prepares for a powerful upturn.
Cracking Through: IMX Breaks Free
IMX has busted through a resistance line, propelling it to its massive price increase in the past day. Technical analysis reveals that this breakout could be the first step toward a much larger rally, as IMX navigates through a cup-and-handle pattern.
Typically, an asset following this pattern experiences a rally that mirrors its previous downward spiral. Following this trend, IMX might see a staggering 68% surge to reclaim its $1.064 level. Such a rally could serve as a beacon for a broader market upturn, strengthening the crypto market as a whole.
Reasons for the Rally
The potential for IMX to surge has increased significantly due to the inflow of liquidity into the market. Our website's study shows that the Money Flow Index (MFI) has been consistently in the positive zone (50-80), with a current reading of 72.82. This signifies that liquidity flowing into IMX remains robust, enhancing the likelihood for further upside movement.
However, it's essential to note that when the MFI reaches 80, it indicates that IMX may be overbought, and a price correction could be imminent. Additionally, the Aroon line indicators remain positive, with the Aroon Up line (orange) staying above the Aroon Down line (blue). The Aroon Up stands at 35.71%, while the Aroon Down is at 0.00%. This shows that the uptrend is still intact, and the rally is still a go.
Driving Factors Behind Liquidity Inflow
The liquidity surging into IMX is closely linked to the explosive growth of the NFT applications sector, a category that IMX belongs to. As per Artemis, the NFT application sector is now the third-fastest-growing sector, expanding at a rate of 47.6%, trailing only behind Bitcoin and AI sectors.
This rapid growth demonstrates renewed investor interest, particularly in assets that have a good chance of delivering high returns. With IMX being a leading contender, it continues to draw liquidity, generation momentum for a possible rally.
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- IMX's run-up and potential surge is fueled by technical patterns, growing NFT applications sector, and building liquidity.
- Key factors include a cup-and-handle pattern and a 68% surge target of $1.064, a volume surging 292% to $164 million, and the MFI and Aroon Indicator confirming a strong uptrend.
- Liquidity inflows are attributed to renewed investor interest in NFT applications, as they are now the third-fastest-growing sector.
- The cryptocurrency market has witnessed a significant shift, with Immutable [IMX] leading the charge as the top gainer, recording a impressive 17% increase.
- Our analysis indicates that IMX's bullish run is likely to continue, foreshadowing a powerful upturn, thanks to its recent breakout and navigation through a cup-and-handle pattern.
- This cup-and-handle pattern suggests a possible 68% surge for IMX, aiming to reclaim the $1.064 level, which could catalyze a broader market upturn.
- The influx of liquidity into the market, as evidenced by the Money Flow Index (MFI) consistently remaining in the positive zone, is a key driver of IMX's potential rally.
- The explosive growth of the NFT applications sector, of which IMX is a part, is closely linked to the influx of liquidity, propelling IMX's momentum for a possible rally.
- With the Artemis report revealing that the NFT application sector is the third-fastest-growing sector, assets with high return potential like IMX continue to attract liquidity, strengthening the crypto market landscape as a whole.
