Immutable (IMX) is changing hands at $0.1409 and has risen almost 20 percent this week, which is followed by a retest of the $0.11 support level earlier in the month. It is showing a simple fact that the bulls are clawing back some of the losses recorded over the last 30 days, with gains of 7.83 percent. However, this digital asset is far from May highs of approximately $0.21, and thus the wider trend cannot be called bullish for now.
IMX respected the major support zone
The 4-hour chart represents a retracement for IMX following a prolonged drop from a high near $0.21 in mid-May to just close to $0.11 in early July. This mentioned range of $0.11-$0.12 support zone led to a surge in buying. As a result, it carried the price to test the level of $0.19 briefly before going for a correction to roughly $0.14. A test of the supply at $0.19 is depicting that sellers are still in control and active to these bounces, although it implies buyers do have conviction as well.
At this point, we see the range of price action is roughly between resistance at $0.15 and support at $0.13, and the present is what the market participants are supposed to watch closely going forward.
If IMX manages to break and hold above $0.15, it would be an encouraging sign that the rebound could potentially push this digital asset up to test resistance in the $0.18-$0.19 area, whereas if the asset breaks below support of $0.13, it would send focus back down to support just above $0.11.
Momentum is supporting the recent bounce
Since IMX has experienced a bounce from the support zone of $0.11, the momentum indicators have become healthier. RSI7 has gone up to 73.98, and this is a sign of good short-term buying strength, considering the prevailing trend may ease off before the rally moves higher. Both RSI14 (58.46) and RSI21 (52.75) stood additionally well above the neutral 50 level, and it means that the momentum has gotten better for longer time frames.
The MACD also confirms some strength. The indicator has risen to cross the signal line, forming a histogram, and is highlighting the fading downward momentum. This doesn’t indicate a bottom is in but is still on the optimistic side for IMX. The MACD is currently below the zero level, and this is confirming a larger downtrend is still in place. While MACD corresponds to potential further gains, a trend reversal would imply a breakthrough of significant resistance.
Moving averages continue to highlight the downtrend
IMX is now ranging between its 7-day and 30-day moving averages and this number means short-term momentum has experienced a rise since that bounce action took place. The mentioned averages could potentially act as support in the short to medium term as long as buyers continue to show strength.
The bigger trend continues to remain bearish as the 200-day SMA (Simple Moving Average) is standing at $0.18 and the 200-day EMA is hovering at $0.21 at the time of writing. This is significantly higher than the price of this digital asset. As of now this is a short-term upward trend unless the price goes for a breakout above the resistance levels.
The key levels that cannot be ignored
IMX is trading almost exactly at the daily pivot near $0.142, keeping price action range-bound. The key support is the 61.8 percent Fibonacci level at $0.128, and holding above it keeps the recovery intact. On the upside, $0.15 is the first major resistance. A break above it could push IMX toward $0.165 and then $0.179, while a drop below $0.128 would put the recent bounce at risk and bring the $0.11 support back into focus.
