- Immutable has a bullish structure.
- The token was quick to recover from the recent market-wide price drop.
Immutable [IMX] was trading at a key resistance zone that was both a Fibonacci retracement level and a bearish order block. The Bitcoin [BTC] price plunge from $64.2k to $58.2k saw IMX prices drop by 13%.
It was not enough to undo the strong gains the buyers have put up in the past couple of weeks. The evidence at hand showed bullishness, but the futures market was not wholly on the same page.
The bias is bullish on the daily IMX chart
Source: IMX/USDT on TradingView
On the 13th of August, the Immutable token made a higher high and did not break down below its recent higher low, thus flipping the market structure bullishly in the 1-day timeframe. This saw the price reach the 78.6% Fibonacci retracement level at $1.53.
On Monday, the 26th of August, it saw a rejection from the resistance level, but the bulls were knocking on its doors once again. The technical indicators showed a breakout was likely.
The CMF was at +0.2 to indicate strong capital flows into the market. The RSI also remained above neutral 50 to indicate the bullish momentum might be sustained.
A daily session close above $1.537 would encourage further gains.
Negative funding showed speculators were unconvinced
Source: Coinalyze
Despite the higher timeframe bullish bias, speculators in the lower timeframes were not so keen. While the Open Interest soared during the retest of the $1.5 resistance zone, the funding rate remained negative.
Realistic or not, here’s IMX’s market cap in BTC’s terms
This showed mixed signals of bulls eager to bid but also being in a slight minority.
The spot CVD saw a downturn over the past few hours but maintained its uptrend. Overall, a sustained move beyond $1.53 remains likely.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
