Immutable (IMX), the Ethereum Layer-2 solution, is making headlines today due to an impressive price surge, making it one of the top-performing altcoins.
Currently trading at $1.24, IMX has seen a 10.06% increase in the past 24 hours. This on-chain analysis explores how the token achieved this surge and what to anticipate in the coming days.
Holders Place Immutable on Lockdown, Ready to Stash More Tokens
According to the Exchange Onchain Market Depth, a metric that measures the trading activity on the order books of the top 20 exchanges, IMX is experiencing a surge in buying pressure.
The data provided by IntoTheBlock shows that market participants are prepared to buy nearly seven million IMX tokens at the current price. On the flip side, the number of tokens in line to be sold is a little over five million.
Typically, when bids exceed asks, it indicates that buying pressure is outpacing selling volume. Conversely, if the ask side significantly outweighs the bid side, it suggests that sellers are in control.
Read more: What Is Immutable X?
Therefore, the difference between buying and selling pressure favors buyers and, if sustained, could push IMX’s price higher. But there’s more to consider.
A closer look at the Coins’ Holding Time shows that the number of IMX holders who have refrained from selling has risen by 32% over the last 30 days.
Simply put, a decrease in Holding Time suggests that holders are transacting or possibly selling the cryptocurrency. For IMX, this recent increase in Holding Time indicates growing confidence among holders, and it hasn’t been limited to just the past week.
Data also indicates that this trend has persisted over the last 30 to 90 days, with a triple-digit increase during this period. Avoiding the liquidation of holdings is generally a positive sign for cryptocurrencies.
Thus, if this continues, coupled with increased buying pressure, IMX’s price may add to its recent gains. If validated, the development will reduce the number of IMX holders in losses, which currently stands at 62%.
IMX Price Prediction: Not Yet Time to Lock Gains
According to the daily chart, IMX is approaching a previous support level of between $1.26 and $1.30. The last time the token jumped to this region was on July 21, which ended in a price increase to $1.70.
Currently, the Awesome Oscillator (AO) is negative but is showing green histogram bars. The AO, a technical analysis tool, measures momentum by comparing short-term and long-term price movements.
When the AO crosses above the zero line, it signals bullish momentum, while a reading below it indicates bearish momentum. This indicator is also useful for identifying potential entry and exit points.
Read more: Layer-2 Crypto Projects for 2024: The Top Picks
For IMX, the presence of continuous green bars, even in negative territory, suggests a possible shift in momentum from bearish to bullish, potentially serving as a buy signal. However, this signal can turn bearish depending on the prevailing demand and supply in the market.
In IMX’s case, demand is on the rise, and if it continues or strengthens, the price could revisit the resistance at $1.51. This prediction may be invalidated if demand decreases. If that happens, IMX’s price could drop toward $1.07.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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Victor Olanrewaju
https://beincrypto.com/immutable-imx-holders-buying-pressure/
2024-08-14 17:00:00
