The price of Immutable (IMX) has surged by more than 13% in the last two days. The token now appears to be presenting an opportunity for buyers to exploit.
IMX broke out from a five-month-long descending channel that had served as resistance to its price growth since March. The breakout occurred seven days ago, with the price spiking slightly higher before coming back for a retest.
The price successfully retested the trend line as new support and is now looking strong for a major rally.
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Typically, when such breakouts and successful retests occur, a lot of buyers rush into a crypto token, seeking buying opportunities and potential gains. As a result, the demand and trading volume of the token increase, pushing the price higher.
IMX Price Indicators Suggest Short-Term Rally
The Relative Strength Index (RSI) is at 60 and is above the RSI-based moving average, which serves as support. This positioning suggests that the price could spike further upward.
The short-term 50-day SMA is already acting as support, which also indicates potential upward movement in the short term. However, the 200-day SMA remains far above the price and could act as resistance in the medium-term.
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For the price to increase further, it needs to break above the resistance level of around $1.66. If successful, the price could rise an additional 30% to around $2.15, which coincides with the 200-day simple moving average.
Immutable Keeps Growing with New Additions to Its Platform
It should be noted that Immutable itself has not made any major upgrades to its platform or significant announcements. However, there has been considerable activity on the blockchain that may have contributed to its price strength.
Exciting news! We're soon migrating to the @Immutable zkEVM network for a seamless gaming experiencePlus, Passport Login integration is on the horizon!Dive into the details with our latest article and get ready for Revomon Novus https://t.co/lOZQvHN0L4#NFTs #GameFi
— Revomon (@RevomonVR) August 27, 2024
Recently, Revomon announced that they are migrating to the Immutable zkEVM network soon for a seamless gaming experience. Immutable also announced that Squid is now available on the Immutable Passport and Toolkit.
The breakout from the descending channel and the expectation of continued bullish moves may also be influenced by the ongoing activity on the Immutable platform.
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