Immutable X reclaims $1.50 for the first time since the May 2022 crypto crash. On-chain indicators suggest that declining network growth could slow a potential IMX price rebound.​

Long-term holders of Immutable X (IMX) appear to have been taking profits since February.​

IMX network is not growing

Immutable X (IMX) is a second-layer scaling solution for NFTs on the Ethereum smart contract network. It allows NFT traders and creators to conduct fast transactions with near-zero gas fees.​

IMX rose to prominence as global interest in NFTs revived in early 2023. However, with the NFT craze now cooling down, key on-chain indicators show that IMX appears to be struggling to find new demand.​

According to on-chain data from Santiment, the number of new addresses created on the IMX network has been declining.

As shown in the chart below, network growth and price peaked on March 17. Since then, newly created addresses have dropped from 594 to 84 as of March 24.

When network growth continues to decline, it is a bearish sign that the underlying token may have difficulty finding new demand. Therefore, the current downward trend in network traction could hurt IMX’s growth prospects in the coming weeks.

Additionally, the profit-taking frenzy among long-term IMX holders further confirms the bearish outlook. As shown by the red line in the chart below, long-term holders appear to have been selling since early February.

In the Santiment chart below, the IMX average coin age (90d) dropped from 60.43 on February 2nd to 28.78 on March 24th.

The Average Coin Age (90d) metric calculates the average number of days recently traded tokens have been in their prior addresses. A downward trend typically indicates selling pressure from long-term holders of the native token.

Ultimately, if Immutable X fails to find new demand and long-term holders continue to sell at current prices, other cryptocurrency investors may panic and trigger a further drop in the price of IMX.

IMX Price Prediction: $1 is the next stop

According to Global In/Out Money (GIOMAP) data compiled by blockchain forensics firm IntoTheBlock, the IMX price could soon fall below $1.

If Immutable X fails to hold above the $1.05 support area, where 2,550 addresses bought 664 million IMX tokens, it could fall below $1. Failure to hold this support level could see IMX slide further to $0.83. Here, another 4,000 addresses that bought 588 million coins could cushion the plunge.

If IMX breaks above $1.33, which was the highest price paid by 2,600 addresses for 32 million tokens, the bulls would invalidate the decline.

If the $1.33 resistance is breached, IMX could rally to $1.66 in the long term. Another 3,400 addresses purchased 14.5 million tokens.