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The digital currency ImmutableX (IMX), integral to gaming and NFT minting on the Ethereum blockchain, is experiencing a notable decline. This downturn is happening amidst a general uptick in interest in gaming and meme coin tokens among South African traders and globally. The imminent release of a substantial number of IMX tokens this Friday is prompting investors to sell, anticipating a drop in value due to increased market supply.
ImmutableX, a Layer 2 scaling solution for Ethereum, focuses on enhancing Web3 gaming experiences and facilitating NFT transactions. It generates revenue by levying fees on NFT sales and primary asset transactions, aiming to draw both gamers and developers to its platform. However, on-chain metrics suggest a rough path ahead for IMX’s value.
A critical event for ImmutableX is the upcoming token unlock scheduled for this Friday. About 34.19 million IMX tokens, valued at approximately $101.55 million (R1.929,45 million), will be released. These tokens are earmarked for private sale participants and will be used in ecosystem and project development initiatives. Analysts predict that $67.39 million (R1.280,41 million) worth of these tokens, allocated for development purposes, will soon enter the market, potentially heightening selling pressure and exacerbating the token’s recent losses.
On-chain data, including metrics like Active Addresses and Network Growth, indicate a waning interest in IMX. Both metrics have seen declines over March, suggesting diminishing market engagement. Additionally, the Supply on Exchanges metric rose in March, hinting at an increased readiness among holders to sell their tokens, further risking a price drop.
The technical analysis of IMX’s price trajectory shows a concerning trend. After peaking at $3.76 (R71.44) in mid-March, the price has been on a downward trajectory, now teetering near a critical support level at $2.45 (R46.55). Further declines could push it to a lower support at $2.09 (R39.71). Technical indicators like the Awesome Oscillator and the Relative Strength Index (RSI) corroborate the potential for further drops, although a rebound could occur if IMX surpasses a pivotal resistance level.
For IMX’s value to stabilize and potentially recover, it must overcome significant resistance levels. A reversal in the current bearish trend could signal a rally towards earlier highs. However, with the upcoming token unlock, investors, particularly those in South Africa, remain cautious, closely monitoring market dynamics and on-chain metrics to navigate the volatile crypto landscape.
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