ImmutableX (IMX), the native token of the Immutable blockchain, is showing signs of a significant upside rally, despite prevailing bearish market conditions. Recently, IMX reached a crucial support level at $1.05, which has historically acted as a springboard for upward momentum. As the market sentiment improves, analysts are predicting that IMX could surge by as much as 60%, potentially reaching $1.70 in the near future.

Historical Price Movements and Technical Outlook

IMX has tested the $1.05 level multiple times since July 2024, each time triggering notable price increases. This consistent pattern has led experts to believe that IMX is on the verge of another rally. However, it is important to note that the token is currently trading below the 200 Exponential Moving Average (EMA), indicating an overall downtrend in the market. Despite this, the support at $1.05 remains strong, and as long as IMX stays above $1.00, a potential 60% price jump to $1.70 is highly likely.

Additionally, a bullish divergence is visible on the daily timeframe, suggesting that the market is primed for a reversal. This technical setup, combined with the token’s historical performance, paints a positive outlook for IMX in the coming days.

Surge in Whale Activity and Large Transactions

One of the key factors driving optimism for IMX is the surge in whale activity. On-chain data from IntoTheBlock reveals that large transaction volume for IMX has increased by a staggering 360% in the past 24 hours. This uptick in whale participation indicates growing confidence in the token’s future performance. Large institutional buyers and long-term holders are actively contributing to the bullish price action, further solidifying the belief that IMX is on the verge of a significant rally.

Major Liquidation Levels to Watch

Despite the positive technical indicators, IMX is not without its risks. According to CoinGlass, there are major liquidation areas around the $1.02 mark on the lower end and $1.105 on the higher side. These levels have become focal points for traders who are heavily leveraged, and any price movement in these areas could trigger significant liquidations.

If IMX’s price falls below the $1.02 level, nearly $365,380 worth of long positions could be liquidated, potentially putting downward pressure on the token. On the flip side, if the price rises above $1.105, approximately $425,170 worth of short positions would be liquidated, leading to a possible price surge.

Market Sentiment and Future Prospects

The market sentiment surrounding IMX remains cautiously optimistic. While traders are still positioning themselves on the bearish side in the short term, the increasing whale activity and the favorable technical indicators suggest that a bullish reversal may be in store. If IMX can maintain its support levels and break through the resistance at $1.105, the path to $1.70 or higher becomes increasingly plausible.

The combination of whale accumulation, favorable technical signals, and strategic support levels presents a solid foundation for a potential rally. For investors, keeping an eye on the $1.02 and $1.105 liquidation levels will be crucial in determining the direction of IMX’s price action.

Conclusion

In conclusion, ImmutableX (IMX) is setting up for a strong rally, fueled by increasing whale activity and a favorable technical setup. With historical support at $1.05 and a bullish divergence on the charts, IMX could potentially soar by 60%, reaching the $1.70 mark in the near future. However, traders should be cautious of the liquidation levels around $1.02 and $1.105, which could impact price volatility. As the market sentiment shifts, IMX’s bullish prospects look promising, with the potential for significant gains in the coming weeks.