Is There An Artificial Surge Behind it?

The Immutable’s native token IMX has experienced a hike of more than 30% in the last 24 hours. The IMX price hike was supported by a 5087% rise in the daily volume, which increased to $1.07 Billion. As per coinmarketcap data, the circulating supply to the total supply ratio is 58.49%, indicating that the whales are active as a large volume is being circulated in the market.

The reason behind the sudden hike in The IMX token price is that a majority of the trade volume for the IMX token has come from the South Korean exchange “UPBIT”. The South Korean exchange has accounted for 20% of the total transaction. Whereas other major exchanges like BINANCE received only 7% of the transactions.

Lookonchain, A crypto Analysis firm, has disclosed that the UPBIT wallets have accumulated $9.45 Million worth of IMX tokens and transferred them to the wallet “0x2F77”. Wallet “0x2F77” became the 9th largest holder of IMX with a total holding worth of $20.4 Million.

Moreover, the derivatives data obtained from the “coinglass.com” website states that along with the price and volume rise, there has been an increment of 700% in the open interest contracts in the past 24 hours. The IMX token has $119 Million open contracts as of Now.

However, It is still unrevealed why the token experienced a sudden hike in price along with a massive volume. The Analysts have a different perspective on the price hike.

Some Analysts observe that it might be a manipulation for the retailers that might have been created by the whales. The price hike might be a showoff and attract retailers to create positions in the token. The retailers may create liquidity, which may be later used to dump a large quantity by the whales with a minimum price change.

The other perspective behind the price hike might be to take advantage of arbitrage trading by manipulating the price followed by buying from one exchange and dumping it to the other exchange.

Immutable Price Showed A Gain Of Over 30% In The Last 24 Hours.

The Immutable price is currently trading at $0.6945, with a gain of more than 30% in the past 24 hours. The daily chart illustrates the breakout of a parallel channel pattern above the $0.5 level.

The technical indicators imply that the IMX price has shown a breakout of the 50-day EMA. The price currently trades near the 200-day EMA, which might act as a resistance to the price, and the price may struggle to break above it.

Conclusion

The IMX token, which is used for the Immutable platform, has surged by more than 30% in the last 24 hours, with a huge increase in volume and open interest. The main reason for this spike is the high demand from the South Korean exchange UPBIT, which has bought and transferred a large amount of IMX tokens to a single wallet. Analysts have different views on whether this is a manipulation by whales or an arbitrage opportunity. The IMX price has broken out of a channel pattern and is trading near the 200-day EMA.

Technical Levels

Support levels: $0.55 and $0.48.
Resistance levels: $0.704 and $0.784.

Disclaimer

The views and opinions stated by the author or any people named in this article are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing