Immutable’s utility token, IMX, surged by 15% over the last 24 hours, marking one of the strongest performances in the altcoin market. At the time of writing, IMX was trading at around $0.64, riding high on renewed bullish momentum fueled by improving technicals and solid on-chain metrics. This rally has fueled optimism among traders, many of whom are now closely watching whether the token can maintain its trajectory and challenge the psychological resistance at $0.70.

One key signal supporting this optimistic sentiment is the rise in IMX’s long/short ratio. This metric, which tracks how many traders are betting on a price increase versus a decrease, has pushed above the neutral line to stand slightly over 1.0. When this ratio tips above one, it typically indicates that more traders are opening long positions, suggesting increased confidence in a continued upward move. In the current context, it reveals growing bullish conviction among market participants who are anticipating further gains.

Adding to the positive picture is the divergence in IMX’s price action compared to its Daily Active Addresses (DAA). The token is showing a strong positive DAA divergence of over 63%, indicating that network activity is growing in tandem with price increases. This is considered a healthy sign in crypto markets because it means user adoption is backing the price action, rather than speculative volume alone. As more users engage with the network, the fundamentals appear to be strengthening, increasing the probability of sustained price appreciation.

Technical indicators also paint a bullish outlook for IMX. On the daily chart, the Moving Average Convergence Divergence (MACD) indicator suggests that buying momentum is building. The MACD line is currently positioned above both the signal line and the neutral zero line, confirming an ongoing bullish trend. This crossover is widely interpreted as a buy signal, hinting that IMX could sustain its upward drive in the short term. If momentum holds, the token could break past the near-term resistance at $0.73 and move toward the next target at $0.79.

While optimism is high, it’s important to remain aware of the downside risks. Market volatility remains a constant in the crypto space, and any significant shift in sentiment could reverse the current trend. If bearish pressure returns and buyers fail to hold the current support, IMX could retreat toward $0.55. That said, the current structure of higher lows and increasing volume suggests that buyers still have the upper hand.

The broader market conditions also play a role in IMX’s outlook. As investor appetite for altcoins grows, projects with strong utility and user engagement like Immutable X are likely to benefit. The current environment, combined with the rising on-chain activity and a favorable technical setup, provides a solid foundation for continued bullish performance.

In summary, Immutable’s IMX token appears well-positioned for further gains following its impressive 15% daily rally. The alignment of bullish trading sentiment, rising user activity, and strong technical indicators increases the likelihood of a continued breakout. If the token successfully clears resistance in the $0.70–$0.73 zone, the next stop could be closer to $0.79, offering a compelling opportunity for short-term traders and long-term holders alike.