Whales’ trooping-in on Immutable X may be surprising but there’s a catch

• Whales have been accumulating a lot of IMX since November 2022.
• A rising interest in zk rollups could keep the token in a bullish zone.

Since the crypto market began the year in a flattering fashion, attention has hardly been drawn to Immutable X [IMX], the layer two scaling solution. Notwithstanding, the token has been able to produce a 105% increase in the last 30 days. 

Read Immutable X’s [IMX] Price Prediction 2023-2024

While the retail sector may have missed the jump, whales have had a different experience. According to Santiment, addresses holding between 1 million to 1000 million IMX have been constantly accumulating even before the new year began. 

Information from the on-chain analytic platform revealed that these heavy purses have been accumulating in between IMX pumps and dumps.

Source: Santiment

Thanks to the ZKP effect

Interestingly, the decision to scoop a lot of IMX tokens may not be born out of speculation and demand alone. Santiment pointed out that the rising adoption of Zero-Knowledge Proofs (ZKPs) may have played a role in the aggressive accumulation.

ZKPs exist so that statements and transactions can be verified by the verifier and prover without revealing the contents of the information involved.

Projects like Polygon [MATIC] have also been at the forefront of the ZKP system. And, since Immutable X also engages zk-rollups in scaling Ethereum’s [ETH] limitations, it was inevitable for IMX not to react.

The Santiment report also noted that the crypto community adored ZKPs. This was because 40% of a 2022 survey agreed that ZKPs would be vital to the NFT and DeFi ecosystem in 2023. Santiment reiterated the stance, stating 

“State of Zero Knowledge 2022 Survey reveals over 40% of respondents find ZKPs will be highly important in the DeFi, Metaverse and Web3. We strongly believe this narrative will play an important role in mid 2023.”

Stay true to the colors that be

So, can IMX still hold on to the greens in the short term? According to CoinMarketCap, IMX has been able to sustain the bull momentum in the last seven days. Also, in the last 24 hours, the token followed the slight market increase with a 2.91% hike.

How many are 1,10,100 IMXs worth today?

Indications from the Moving Average Convergence Divergence (MACD) showed that IMX still stuck its momentum in the bullish path.

This was because the blue dynamic line was positioned higher than the orange. A situation like this means buyers are in control. Moreso, the 12-26 EMA close was above the zero histogram point.

However, the daily chart posture revealed that the Chaikin Money Flow (CMF) was negative at -0.09. The downtrend of this indicator could pose a threat to the IMX uptick, but whales’ continual input could serve as a remedy.

Source: TradingView