Immutable (IMX) price has kept declining by facing resistance from a descending trendline since March. After losing more than 60%, the bearish trend seems to have ended near the $1 mark. Moreover, the price triggered a breakout from the trendline, and a retest was performed.
Since mid-June, the IMX price has struggled between the $1 and $1.60 levels. It has formed an inverted head and shoulder pattern at the bottom, which might invite buyers. Smashing the neckline could help boost the momentum. Let’s explore what would happen after this retest.
IMX Price Has Shaped a Falling Wedge Pattern
IMX crypto traded at $1.36 at press time, which has declined by 1.86% in the past 24 hours. The market capitalization was $2.19 Billion, and the 24-hour trading volume rose 300% to $103.24 Million.
Based on the technical chart, the IMX price has triggered a breakout and retest from the wedge pattern. After the retest, the price witnessed a 20% gain in a few hours. The price has surpassed the 20-day exponential moving average (EMA) during this move. It is heading towards the 200-day EMA.
A bullish trend can be anticipated, assuming the crypto asset price overcomes the 200-day EMA. The price in the $2 territory could be a bullish signal and may remain bullish for the long term. It is expected to recover this year’s losses after smashing the 200-day EMA.
Alternatively, this breakout could turn into a fakeout if the Immutable price slips below the 20-day EMA. Most buyers might be trapped at the breakout, resulting in strong selling pressure. The price may melt to a new all-time low once it starts trading below the psychological level of $1.
The technical indicators suggest that the RSI has generated a bullish divergence, which showcases the bullish forecast. The IMX price has exceeded the 20-day EMA and is eyeing the 200-day EMA. This could be a bullish key factor.
Could the Immutable price capture 350% in a single thrust?
JAVON MARK (@JavonTM1) has pointed out that the IMX crypto has the potential to perform extraordinarily. In the previous rally, the IMX crypto price surged by 378%, still holding some gains after the correction phase.
According to the chart structure, the IMX price is expected to claim another 243% gain after the correction phase. The price may move with a stronger intensity than the previous one.
IMX Price Forecast Based on Technical Chart
Based on the analysis, the IMX price has experienced a significant breakout and retest. It was accompanied by a surge in volume, indicating potential for further upward movement.
The technical indicators suggested a bullish trend. There is a possibility that the price will surpass the 200-day EMA and enter a long-term bullish phase.
However, monitoring the price closely is essential, as a slip below the 20-day EMA could indicate a potential fakeout. This could lead to strong selling pressure, potentially driving the price to new lows.
