Will ImmutableX Turn Bullish?

The price of ImmutableX (IMX) has been in a bearish market structure for most of this year, with the price correcting nearly 70% from its internal high. However, this correction follows a highly successful 2023, where the price saw a 530% increase.

Such a correction is expected and provides investors with the opportunity to buy this fundamentally strong cryptocurrency at a bargain price.

Weekly time frame analysis

IMXUSD - 1 Week Time Frame

The first significant factor to consider is the recent close above resistance on the weekly timeframe, which has established a new support zone known as the Inversion Fair Value Gap (IFVG). This support zone is highlighted as the orange area on the attached chart.

Additionally, there was an immediate rebalancing of the bullish move, confirming buy positions. It is crucial that the price remains within this support zone, meaning it must not close below the lower boundary of the zone.

If the price falls below this level, buy orders would be invalidated, and investors should consider selling off most of their positions.

Daily time frame analysis

IMXUSD - 1 Day Time Frame

To maintain the integrity of the weekly support zone, it is important that, on the daily timeframe, the price does not drop below the order block level from the 3-month timeframe.

Simultaneously, it is crucial that the price closes above the Fair Value Gap (FVG) on the daily chart. This would further increase the likelihood of success for buy positions.

The targets for this potential trade are two levels of buy-side liquidity, with a protective stop-loss order placed below the external lower low (indicated by the lower blue line on the chart).

To wrap things up, as mentioned earlier, the overall market structure remains bearish, so buy orders should be executed with reduced volume to manage risk effectively.