IMX is the native token of Immutable X, a layer-two scaling solution for NFTs on Ethereum. Immutable X aims to provide instant trading and massive scalability for NFTs while eliminating gas fees and maintaining user and asset security.
Immutable X is built with STARK zk-rollups, a technology that compresses transactions on Ethereum and enables developers to create decentralized applications using familiar tools and languages.
Fundamental Analysis
IMX has a robust fundamental value proposition as it powers the Immutable X ecosystem and provides various benefits and utilities for its users. Some of the use cases of IMX are:
- Fee payment – Users can pay fees for minting and trading NFTs on Immutable X using IMX. The fees are dynamic and depend on the supply and demand of the network.
- Staking: Users can stake IMX to earn rewards, access exclusive content, and participate in project governance. Staking also helps secure the network and aligns the incentives of the stakeholders.
- Governance: Users can vote on proposals that affect the development and direction of Immutable X using IMX. This gives users a voice and a stake in the project’s future.
- Ecosystem development: Users can use IMX to support and fund various initiatives and projects that contribute to the growth and innovation of Immutable X. This includes partnerships, collaborations, grants, bounties, and more.
IMX has a total supply of 2 billion tokens, of which 914 million are in circulation. The token distribution is as follows:
- 20% for team and advisors
- 20% for ecosystem fund
- 20% for community rewards
- 15% for investors
- 15% for company reserve
- 10% for public sale
IMX has a strong team of experienced developers, entrepreneurs, and advisors. The team is led by co-founders Robbie Ferguson and James Ferguson, the co-founders of Immutable, a company that creates blockchain games such as Gods Unchained and Guild of Guardians. The team also includes advisors such as Anthony Pompliano, Ryan Selkis, Sam Bankman-Fried, and more.
IMX has a strong network effect and a growing community of users, developers, partners, and supporters. Some of the notable projects that use Immutable X are:
- Gods Unchained: A trading card game that lets players own, trade, and play with digital cards backed by NFTs.
- Guild of Guardians: A mobile RPG game that lets players create, own, and trade heroes backed by NFTs.
- Illuvium: An open-world RPG game that lets players collect, battle, and trade creatures backed by NFTs.
- Mintable: A marketplace that lets users create, buy, sell, and discover NFTs across various categories.
Immutable X aims to be the leading platform for NFTs on Ethereum by providing a scalable, secure, and user-friendly solution that appeals to both mainstream and crypto users.
Technical Analysis
IMX was launched on September 23rd, 2021, at an initial price of $0.38 per token. Since then, it has experienced a significant price appreciation, reaching an all-time high of $9.50 on November 26th, 2021. This represents a staggering increase of over 2400% in just two months.
The price rally was driven by several factors, such as:
- The launch of Immutable X’s flagship NFT collection, Loaded Lions, sold out in less than five hours and generated over 1.5 million USD in sales.
- The announcement of Immutable X’s integration with OpenSea will allow users to trade NFTs on Immutable X using OpenSea’s interface and liquidity.
- However, the price rally was also followed by a sharp correction, as IMX dropped to a low of $1.03 on December 13th, 2021. This represents a decline of over 89% from its all-time high.
The price correction was influenced by several factors, such as
- The overall bearish sentiment in the crypto market.
- The profit-taking and selling pressure from early investors and speculators who bought IMX at low prices and sold at high prices.
- The technical resistance and psychological barrier at the $10 level proved difficult to break for IMX.
IMX Price Analysis
IMX is trading at around $1.15 per token, with a market cap of over $1 billion and a 24-hour trading volume of over $42 million. Let’s take a look at the chart below for trend analysis:
In a 2D time frame, the price is getting rejected from the horizontal resistance zone. A downward movement is expected from here. On the other hand, if it breaks above the horizontal resistance zone with a successful retest then it can go upward.
IMX is also facing strong resistance at the $1.5 level, which coincides with the 23.6% Fibonacci retracement level of the downtrend from the all-time high to the recent low.
Therefore, the future price direction of IMX will depend on whether it can break above or below these critical levels. If IMX can break above the $1.5 level and sustain above it, it could signal a bullish continuation and target the following resistance levels at $2 and $3, which coincide with the 38.2% and 50% Fibonacci retracement levels, respectively. On the other hand, if IMX can break above these levels, it could challenge its previous all-time high at $9.5.
However, if IMX fails to break above the $1.5 level and falls below the 20-day MA and the $1 level, it could signal a bearish continuation and target the following support levels at $0.8 and $0.6, which coincide with the previous lows. If IMX falls below these levels, it could enter a deeper downtrend and test new lows.
Conclusion
IMX is a good token that powers a scalable and secure platform for NFTs on Ethereum. IMX has a robust fundamental value proposition as it provides various benefits and utilities for its users, such as fee payment, staking, governance, and ecosystem development. IMX has a strong team of experienced developers, entrepreneurs, and advisors. IMX has a strong network effect and a growing community of users, developers, partners, and supporters. IMX has strong growth potential as it taps into the booming market of NFTs, which are expected to reach $470 billion by 2025.
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