IMX, the native token powering Immutable, Ethereum’s first layer-two scaling solution for NFTs, is currently the leading gainer, with its price increasing by 18% in the last 24 hours.
This price movement extends its seven-day surge, which has already elevated the token by over 50%. If the momentum persists, IMX may soon challenge a seven-month high. Here’s how.
IMX Strengthens Buy-Side Activity
A consistent increase in network activity has fueled IMX’s double-digit rise in the past week. According to Glassnode, user engagement on the token’s network has steadily progressed over recent weeks, reaching a five-month peak of 1,197 daily active addresses on September 18.
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An uptick in daily active addresses on an asset’s network indicates heightened user engagement. Such increased demand on-chain enhances market confidence, suggesting that price gains are underpinned by genuine network utility.
For IMX, this rising level of engagement bolsters the rationale behind its recent price increase, instilling traders with more confidence that the ongoing rally is supported and may persist in the near term.
Moreover, readings from IMX’s Moving Average Convergence Divergence (MACD) indicator reinforce this optimistic outlook. As of now, the token’s MACD line (blue) is positioned above the signal line (orange), with expanding green histogram bars, indicating a gradual buildup of bullish activity.
The MACD indicator tracks trends and momentum in price movements, assisting traders in identifying potential buy or sell signals through crossovers between the MACD and signal lines.
In the case of IMX, when the MACD line is above the signal line, it indicates increasing buy-side strength and suggests the rally may continue.
IMX Rally Faces Potential Critical Test
As investor interest escalates, Immutable’s IMX seems poised to prolong its winning streak. Should the momentum carry on, the price could advance toward a seven-month high at $1.075, where the next significant resistance level is located.
Nevertheless, potential risks exist. A wave of profit-taking could hinder the rally, potentially reversing IMX’s upward trajectory and pushing the token back toward support around $0.798.
