Here’s why ImmutableX price could crash 30% in a bull market
- ImmutableX price might face rejection at a key hurdle of $2.40.
- IMX holders could witness a 28% crash, not so different from the 20% fall seen between December 18 and 20.
- Momentum indicators are at critical levels, supporting the bearish outlook.
- Invalidation of this pessimistic scenario for IMX will occur with a flip of the $2.58 hurdle into support.
ImmutableX (IMX) price is at a pivotal point and could trigger a steep correction soon despite the broadly optimistic sentiment in the crypto market. Momentum indicators are supporting this move, but there are a few caveats to this potential downtrend.
Also read: IMX, 1INCH, DYDX tokens worth $105 million will unlock in the upcoming week
ImmutableX price at critical juncture
ImmutableX, which trades at $2.36, is showing similar signs as those seen on December 15, right before IMX crashed 20%. If history repeats, a similar nosedive could be on its way. Some of these signs include
- Rejection around key resistance level
- Liquidity run above previous swing highs
- Followed by a swing failure pattern
- Momentum indicators turning bearish.
Recently, ImmutableX price created three higher highs, each one ending up with a large topside wick and a small body, a sign of increasing selling pressure. After this move, IMX slid lower and created a lower low with respect to the previous low formed earlier on Thursday. This development is a potential shift in the market structure. If IMX price fails to produce a higher high after this, it would set a bearish scenario.
The Relative Strength Index (RSI) has also breached a short-term trend line and is awaiting a flip of the 50 mean level. The Awesome Oscillator (AO) also sits above its mean level of 0, a breakdown of which will confirm the start of a downtrend.
With all the sell signals, ImmutableX price is likely to slide lower and breach the inclined support trend line, confirming the correction outlook. This move could further knock IMX down to the next key support level at $2.15. A breakdown of this level could send IMX to the volume point of control at $2.
The last target where bearish can book profits will be the low volume node at $1.66. This move, in total, would constitute a 30% crash from the current price level.
IMX/USDT 1-hour chart
While the technicals are forecasting a bearish outlook for ImmutableX price, if Bitcoin price rallies, it would cause altcoins to tag along. In such a case, if IMX flips the $2.58 hurdle into a support floor, it would create a higher high and invalidate the pessimistic scenario.
This development could see ImmutableX price climb nearly 5% and tag the $2.7 barrier next.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
