Immutable X forms C&H ahead of an important IMX upgrade

Immutable X (IMX/USD) price has staged a strong recovery and is hovering near its highest point in 2023 despite the ongoing challenges in the non-fungible token (NFT) industry. IMX soared to a high of $1.3020, the highest point on February 23. It has risen by over 228% from its lowest level in December this year.

NFT industry woes

Immutable X is a leading layer-2 blockchain platform that primarily focuses on gaming and NFTs. Therefore, the platform is exposed to the ups and downs of the industry, which partly explains why the IMX token slumped hard in 2022.

The NFT industry received a major blow this week after Meta Platforms announced that it was leaving the industry. As we reported here, Meta had partnered with other blockchains like Polygon and Flow to offer NFTs in its popular social media platforms.

Many other mainstream companies that have moved to the NFT industry have not gained traction as well. For example, it is unclear whether GameStop’s partnership with Loopring and Immutable X was having any success.

IMX price is rising after the company announced that it had no exposure to Silicon Valley Bank (SVB) and Signature. Instead, the firm said that it has A$280 million in cash. Most of these funds are denominated in US dollars.

The other reason is that Immutable X teased that it will roll out the biggest token upgrade in its history. The upgrade, which will happen in the next five days, will introduce four features that the developers hope will change the ecosystem forever. It is unclear what the upgrades will entail.

The other main reason why IMX price is rising is the recently launched Illuvium: Beyond product. It is, however, not clear whether the launch has had to more sales in its ecosystem. Data shows that Immutable X NFT volume in the first half of March came in at $11 million, down from February’s $23 million.

IMX price prediction

IMX chart by TradingView

The daily chart shows that the IMX token price has been in a strong bullish trend this year. As it rose, the token formed a cup and handle pattern that is shown in green. It is also being supported by the 50-day and 100-day moving averages. Now, it is about to move above the important resistance point at $1.3020, the upper side of the C&H pattern.

Therefore, the token will likely have a bullish breakout as buyers target the key resistance point at $1.60. A drop below the key support level at $1.097 will invalidate the bullish view.