ImmutableX Price Forecast: A potential 15% rally could be killed by spot Bitcoin ETF approval

ImmutableX price has been following a short-term downtrend since the last week of 2023, and this downtrend is now transforming into a potential bullish reversal. However, the broader market conditions might not let this bullish outcome succeed since the crypto market is close to a spot Bitcoin ETF approval.

ImmutableX price is close to a breakout yet far from a rally

ImmutableX price can be seen trading at $1.93 at the time of writing, nearing a breakout from the falling wedge pattern that can be observed on the 4-hour chart. This pattern is characterized by a contracting range between two trendlines. It is considered a bullish reversal pattern and is typically formed during a downtrend. 

The falling wedge pattern is identified by two trendlines – one descending trendline that connects the lower highs and another ascending trendline that connects the lower lows.

The falling wedge is interpreted as a bullish signal since it indicates that the sellers are losing strength and the buyers may be gaining control. It hints at the downtrend losing momentum and a reversal or a significant upward move being imminent. Generally, a breach above the breakout point leads to the asset marking a rally similar to the height of the initial point of the falling wedge pattern.

In the case of IMX, this target price is set at $2.26, marking an almost 16% increase above the breakout point. Since the support zone is established at $1.85, ImmutableX price has another shot at a breakout even if it fails this time around.

IMX/USD 4-hour chart

Price indicators are exhibiting mixed signals since the Relative Strength Index (RSI) is suggesting a bearish outcome as it sits below the neutral line of 50.0. On the other hand, the Moving Average Convergence Divergence (MACD) highlights bullishness on the charts, evinced by the rising green bars on the histogram.

ImmutableX RSI and MACD

However, considering the fact that the spot Bitcoin ETF approval is around the corner despite the SEC’s X account being compromised earlier today, the potential 16% rally could be easily decimated since, following the approval, most of the investors’ funds will flow into Bitcoin. 

This could invalidate the bullish thesis, and the falling wedge pattern might fail, resulting in ImmutableX price losing the support of $1.85 and falling to $1.70 and lower.