The crypto market is witnessing a strong recovery after a prolonged slump, and one of the tokens that is leading the charge is IMX, the native token of Immutable X, a layer-2 scaling solution for Ethereum-based NFTs. IMX has surged 10.61% in the last 24 hours, reaching a new all-time high of $3.27. What are the factors behind this impressive rally?
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South Korean Demand
One of the main drivers of the price surge was the high trading volume from South Korean exchanges, especially BW.com and Upbit, which accounted for over 68% of the total volume in the last 24 hours. South Korean traders have shown a strong interest in NFT and gaming tokens, such as IMX, which powers the Immutable X platform for minting and trading NFTs.
Immutable X is a layer-2 solution that leverages zero-knowledge proofs to enable instant and gas-free transactions for NFTs on the Ethereum network. This solves the scalability and cost issues that have plagued the NFT sector, and allows for more innovation and adoption. Immutable X has partnered with several prominent NFT projects, such as Gods Unchained, Guild of Guardians, Illuvium, and Mintable.
South Korea is one of the most active and influential markets in the crypto space, and its demand for NFT and gaming tokens reflects the growing popularity and potential of this emerging sector. IMX, as the fuel of Immutable X, stands to benefit from this trend, as more users and developers flock to its platform.
Falling Wedge Breakout
Another factor that contributed to the price surge was the technical breakout from a falling wedge pattern, which is a bullish reversal signal that indicates a potential uptrend after a downtrend. IMX broke above the upper boundary of the wedge and the $2.00 psychological level, reaching a high of $2.59, which is a 40% increase from the wedge’s base.
The falling wedge pattern is formed when the price makes lower highs and lower lows, but the slope of the lows is steeper than the highs, creating a narrowing wedge shape. The breakout occurs when the price breaks above the upper trendline of the wedge, signaling a reversal of the previous downtrend.
The breakout was accompanied by a significant increase in volume, which confirms the strength and validity of the bullish move. The price also closed above the 20-day exponential moving average (EMA), which is a short-term indicator of the price trend. The next resistance level to watch is the $3.00 mark, which could pose a challenge for the bulls.
Conclusion
IMX, the native token of Immutable X, has seen a remarkable price surge of 10.61% in the last 24 hours, reaching a new all-time high of $2.59. The rally was driven by the high demand from South Korean exchanges, and the technical breakout from a falling wedge pattern. Immutable X has a strong value proposition and a promising roadmap, which could support its long-term growth and adoption.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Readers should consult legal professionals for specific guidance related to their investments and legal matters.