- Immutable could see a dip to $0.53 before rallying to $0.71
- A breakout beyond the resistance at $0.71-$0.76 might not occur on the first attempt
Immutable [IMX] has rallied by 26% in two days, gaining by 20% on Tuesday alone. The move came alongside a huge surge in trading volume, signaling intense interest in the asset. Despite the quick gains and the short-term bullishness, however, IMX appeared to be consolidating after a long downtrend at press time.
The $0.71 and $0.76 zones are key resistance levels that need to be flipped to support before an uptrend can be established. Until then, traders and investors can assume the range would hold.
Immutable set to challenge the $0.71 resistance after a brief price dip
Source: IMX/USDT on TradingView
The IMX range formation extended from $0.37 to $0.71. The mid-range level at $0.545 acted as support, then as resistance, towards the end of March. Over the past couple of days the price surpassed this resistance too.
The range high marked the lower high of the bearish swing structure as well. That helped explain the expectation of a reversal from the $0.71-level. Another factor was Immutable’s CMF’s negative reading. Despite the slow rally from $0.37 over the past two weeks, the CMF remained below -0.05. This seemed to be evidence of heavy capital outflows from the market.
On the other hand, the Awesome Oscillator saw a bullish crossover above the zero line. The OBV also jumped above the local high from the final week of March.
Together, these two argued bullish strength. Still, traders need to be wary of the $0.7 resistance due to the bearish 1-day structure.
The 1-week liquidation heatmap showed that a cluster of liquidation levels have built up around the $0.575 and $0.53-levels. These were the short-term price targets for IMX. The $0.69-$0.7 zone is also a strong magnetic zone that could pull the price higher.
The 1-month and 3-month liquidation heatmaps highlighted the $0.69 and $0.76-levels as notable liquidity pockets. Since they marked the local highs, it may be likely that Immutable would see a bearish reversal from these levels.
Hence, traders can look to take profits at these zones and use their retest as a support to look to re-enter long positions.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
