IMX, the native token powering Immutable, Ethereum‘s first layer-two scaling solution for NFTs, is today’s top gainer, with its price climbing 18% in the past 24 hours.
The move extends its seven-day rally, which has already pushed the token up by more than 50%. If momentum holds, IMX could soon retest a seven-month high. This is how.
IMX Builds Buy-Side Strength
A steady uptick in network activity has driven IMX‘s double-digit surge in the past week. According to Glassnode, user activity on the token’s network has climbed steadily over the past few weeks, reaching a five-month high of 1,197 daily active addresses on September 18.
Increasing daily active addresses on an assets network reflects stronger user activity. Higher demand on-chain like this strengthens market confidence, as it suggests that price gains are supported by real network utility.
For IMX, this growing engagement strengthens the case for its recent price surge, giving traders more conviction that the current rally has support and could continue in the short term.
Furthermore, readings from IMX‘s Moving Average Convergence Divergence (MACD) indicator confirm this bullish outlook. As of this writing, the token’s MACD line (blue) rests above the signal line (orange), while the green histogram bars have grown in size, a sign that bullish activity has built up slowly.
IMX MACD. Source: TradingView
The MACD indicator identifies trends and momentum in its price movement. It helps traders spot potential buy or sell signals through crossovers between the MACD and signal lines.
As with IMX, when the MACD line rests above the signal line, it signals growing buy-side strength and hints at the continuation of the current rally.
IMX Rally May Soon Face Critical Test
With investor demand rocketing, Immutables IMX appears set to extend its winning streak. If the momentum continues, the price could climb toward a seven-month peak at $1.075, where the next major resistance level awaits.
Still, risks remain. A wave of profit-taking could derail the rally, potentially reverse IMXs upward trend, and send the token back toward support near $0.798.