How IMX could respond to Immutable's new partnership with Polygon Labs as gaming tokens trend this week

  • Immutable X and Polygon Labs have partnered for Web3 game development acceleration.
  • The partnership comes ahead of launching a zkEVM-powered platform for studios and developers and a day into the GDC.
  • The news could fuel a 43% upswing for IMX as the hype around gaming tokens continues.

Gaming platform Immutable and Polygon Labs have revealed a strategic partnership focused on developing a zero-knowledge-powered blockchain platform for Web3 gaming.

In a blog release, Polygon said they expect Immutable zkEVM to launch in coming months, committing to fully supporting developers and users on Immutable.  

Polygon's MATIC and Immutable X's IMX were trading higher in the four-hour timeframe after the partnership news, with altcoins down as Bitcoin (BTC) looks to cement gains above $28,000.

IMX/USDT 4-hour chart, MATIC/USDT 4-hour chart, BTC/USDT 4-hour chart

Immutable zkEVM to accelerate Web3 gaming

Based on the announcement, an integration with Immutable zkEVM will see studios and game developers enjoys faster, easier, and safer development of Web3 games.

In a statement, Polygon Labs president Ryan Wyatt noted that Immutable zkEVM would help foster Web3 adoption, adding that the collaboration is a significant step towards developer empowerment. Moreover, another cohort of stakeholders who will benefit from the partnership is users, as the platform will deliver actual ownership of in-game assets. In this respect, Wyatt noted:

By leveraging Immutable's top world-class gaming platform, game development becomes seamless, allowing for the creation of rich and unique gaming experiences.

The partnership between Polygon Labs and Immutable comes barely a week before Polygon zkEVM goes live on mainnet beta, with a wide range of blockchains already building atop it. These include Ubisoft, Animoca, Atari, Decentraland, and The Sandbox.

Moreover, the announcement comes on the same day as the 2023 Game Developers Conference (GDC) at San Francisco's Moscone Convention Center. Marking the world's largest event for professionals dedicated to the art and science of making games, the 37th edition will feature more than 330 exhibitors and at least 1,000 speakers over 650 sessions, workshops, roundtable discussions, and networking events.

The conference starts with two days of GDC Summits between March 20 and 21, characterized by a comprehensive analysis of specific game development disciplines or markets. This session aims to promote learning and connection among specific communities. 

The GDC's core conference will open on March 22, with a main-stage presentation themed "The Future of Play," focusing on the future of game development and the evolving workplace. Core Concept Sessions will continue to run on subsequent days until March 24, when feature sessions focussing on the key pillars of game development will ensue. These include audio, business and marketing, design, production and team leadership, programming, and visual arts. 

How IMX could respond amid gaming token-related hype

Immutable X price (IMX) has reacted positively to the partnership news on the lower timeframe, soaring 5% a few hours after the announcement. The upswing is bolstered by the hype around gaming tokens as the GDC event kicked off on March 20.

If buying pressure increases passed current levels, IMX could break past the immediate barrier at the $1.361 resistance level before confronting the $1.599 roadblock. In highly bullish cases, the price could increase to tag the $1.798 resistance level last tested on May 5 before the Terra crisis swept crypto prices to the floor. Such a move would denote a 43.52% upswing from current levels.

Notice a bullish cross on the 1-day time frame, authenticated when the 100-day Exponential Moving Average (EMA) at $0.872 crossed above the 200-day EMA at $0.866. If bulls heed this call, IMX price could soar further. The Awesome Oscillator was also positive, which adds credence to the bullish narrative.

IMX/USDT 1-day chart

Conversely, if selling pressure increases from current levels, IMX could drop to tag the $1.011 support level embraced by the 50-day EMA. In highly desperate cases, the gaming token could extend a leg down to the 100- and 200-day EMAs at $0.872 and $0.866 before reaching the $0.725 support level. Such a move would denote a 41.24% downswing from current levels.

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