The Immutable X price had an excellent weekend as its price surged to an all-time high. This rally was short-lived as its price has dropped by more than 20% in the past few hours. IMX is trading at $7.25, which is lower than its all-time high of about $9.
What is Immutable X?
Immutable X is a layer-2 blockchain project that focuses on Ethereum’s non-fungible tokens (NFT). For starters, layer 2 platforms like Polygon and Loopring help to solve some of the biggest challenges in Ethereum’s network. Some of these challenges are low speed, high costs, and high inefficiencies.
Immutable X solves the challenges of Ethereum’s NFTs by doing several things. For one, it allows customers to set their own trading fees. It also has zero gas fees for peer to peer trading.
It also solves the speed challenge by turbocharging the network’s speed to more than 9,000 transactions per second. In contrast, Ethereum has a speed of less than 20. Immutable X has also ensured that its production is carbon neutral.
IMX is the native token for the Immutable X platform. It is used to reward members of the network. Users also use it for governance systems, staking, and powering transactions. On transactions, about 20% of the protocol fee must be paid using IMX.
The Immutable X price surged during the weekend as investors reflected on the growing market for NFTs. Analysts believe that this industry will keep growing in the coming months and that layer 2 projects will be key beneficiaries. Notably, the network has received high profile partners like TikTok that will mint their coins on the platform.
The ongoing decline is mostly because of profit-taking. It is also because other cryptocurrencies like Bitcoin and Ethereum have retreated.
IMX price prediction
On the hourly chart, we see that the Immutable X price made a major bullish trend recently. It did that by rising above the key resistance at $7.1920. This was the upper side of the cup and handle pattern. Shortly afterwards, the coin jumped by almost 25% and rose to an all-time high of $9.
Now, the chart shows that the IMX price has moved to retest the key level at $7.1920. This pattern is known as a break and retest. It simply means that the coin wants to retest this support and then possibly resume the bullish trend.
While the 25-day and 50-day moving averages have made a bearish crossover, there is a likelihood that the price will ultimately resume the bullish trend and retest its all-time high. Its ATH is about 24% above the current level.