Immutable X (IMX) – a layer 2 scaling solution for NFT on the Ethereum smart contract network – enables traders and NFT creators to execute transactions quickly with virtually no Gas fee. In early 2023, when NFT was hot again, IMX became more popular. Key on-chain metrics show that IMX seems to be having a hard time finding new demand, although the NFT boom is currently slowing.
According to data from Santiment, there are fewer new addresses created on the IMX network. On March 17, both the network expansion and the price peaked. Since then, the number of new addresses created has decreased from 594 to 84 on March 24.
The continued decline in this network's growth is a bad sign that the underlying token may be having trouble generating new demand. Therefore, weak network momentum at the moment could hamper IMX 's growth prospects in the coming weeks.
To make matters worse, the long-term hodler frantically took profits on IMX. LTHs seem to have started selling out since the beginning of February. The IMX Mean Coin Age (90d) index fell from 60.43 on Feb. 2 to 28.78 on March 24.
The average number of days recently traded tokens are calculated using the Mean Coin Age (90d) metric. A downtrend often signals that long-term holders are under selling pressure.
In the end, other crypto investors will likely panic and send Immutable X's price down if LTHs continue to sell at current levels and Immutable X can't find new demand.
Global In/Out (GIOMAP) data collected by blockchain analytics firm IntoTheBlock suggests that the price of IMX could soon drop below $1.
If Immutable X fails to sustain the price above the $1.05 support area, where 2,550 addresses bought 664 million IMX coins, it could drop below the key $1 support. If this level is lost, IMX is likely to continue its deep decline and slide towards $0.83. Another 4,000 addresses bought 588 million tokens at this level which could assist in stopping the fall.
Source: TradingView
However, if IMX breaks through $1.33, the peak price where 2,600 addresses bought 32 million tokens, the bulls will invalidate the downtrend. If it breaks through the $1.33 resistance, IMX could continue to rise for a while, reaching $1.66, where an additional 3,400 addresses bought 14.5 million tokens.
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According to CoinMarketCap
