Immutable X Rises After Co-Founder Shares Big News – How High Can IMX Go?

The native asset of the decentralized gaming platform Immutable X (IMX) has gone up by nearly 17% in the past 24 hours after its co-founder shared some encouraging news about a key feature.

Robbie Ferguson shared on X earlier today that Immutable Passport, a blockchain-based solution that gives users the chance to use their assets on any network or game they want, has already attracted more than 5 million users just 15 months after its launch.

What is Immutable Passport?

Passport was launched in December 2023 and its goal is to make it easier for gamers to sign up and purchase digital assets without having to pay high gas fees.

It also lets them link third-party wallets, manage their in-game items easily, and transfer their assets to other environments.

This reduces friction during the onboarding process for Web 3 games and takes a heavy burden off developers’ shoulders as they no longer have to worry about creating user-friendly sign-up proceedings.

IMX is an ERC-20 token with a pre-mined supply used to compensate users and developers for embracing the platform. Token holders can stake their IMX to earn rewards from the project’s staking pool, which is derived from a 2% fee collected for every transaction settled by its layer-two protocol.

One of the main weaknesses of IMX is that its use cases are limited, as transactions within its layer two can be paid by using Ethereum (ETH). The most attractive aspect of holding IMX is its staking rewards.

As its ecosystem grows, the staking pool should increase in size and the annual percentage yield (APY) will increase alongside.

IMX Needs to Clear the $0.620 Level to Keep Rallying

Trading volumes for IMX have exploded by nearly 300% in the past 24 hours and currently sit at $160 million – a figure that accounts for almost 13% of the token’s circulating supply.

Today’s uptick has pushed IMX above its 21-day EMA. Combined with these strong trading volumes, this could be interpreted as a buy signal as the downtrend may be reversing.

IMX is currently trading within a high-value area where trading volumes have been high. The most relevant support at this point is the $0.360 zone from which the token bounced strongly a few days ago.

During today’s session, IMX rejected a move above its yearly point of control (POC) zone. This is the area with the highest trading volumes.

If the market rejects a move above it, it would support a bearish outlook for IMX and this would be nothing more than a news-driven “dead cat bounce”.

However, a decisive break above this level could solidify the thesis that the token is ready to reverse its downtrend.

Momentum indicators show that the uptrend is still strong as the Relative Strength Index (RSI) stands nearly 40% above the signal line while the MACD’s histogram has been going up for 9 days in a row.

If the price breaks above the POC, the next resistance for bulls stands at $0.741 – also a key value area with high trading volumes. If the price rises above this level, we could see IMX doubling its price as bulls will take full control of the price action in areas where trading volumes are much lower.