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Immutable X price seemed to be trading in green after experiencing a bloodbath in the last five sessions. IMX has slipped downwards wiping out nearly 20% in the period. It is now trying to stabilize near the monthly lows.
At the time of writing, Immutable X was exchanging hands at close to $1.198, recording a 2.33% rise intraday. Recent on-chain data shows a drop in Open Interest contracts in the recent sessions.
Let’s analyze the possible trajectory of IMX Price for September and find out whether Immutable may head for a recovery or if the losses will expand.
Immutable Futures Traders Stepping Back From the Market
In the recent sessions, Bitcoin slipped below $60K, triggering panic among investors. The panic in the broader market put pressure on the altcoins, with Immutable losing nearly 20% in less than a week.
Moreover, in tandem with the price drop, the futures traders stepped back from the long side. As per the data obtained from an on-chain analytics website Santiment, the Open Interest contracts have dropped from $28.1 Million to $23 Million, a nearly 17% drop over the week.
Nearly 5.1 Million positions have been liquidated in recent sessions, indicating a long unwinding among the short term traders. Moreover, the volume to market cap ratio at 2.24% suggests low volatility in the crypto.
Also, the 24 hour active addresses seemed to be constant in the recent sessions, whereas the 7 day active address was observed to be decreasing constantly indicating a drop in the user engagement.
The active addresses reflect the change in number of users that have taken part in any transaction in a given period of time. An increasingly active address often leaves a positive impact on the price and vice versa.
Immutable X Price To Crash to a New Annual Low or Recover?
The price action analysis showcases buyers’ failure. Recently, the bulls attempted a recovery after stabilizing near the lows. However, the price suffered rejections near the 50 day EMA and slumped, wiping out the recent recovery.
Currently trading below the 20, 50 and 200-day EMAs, Immutable risked crashing further. The recent $1.1 support level was acting as the recent support, which if broken, may drag the price towards a new annual low.
The sellers seem to be in control of the trend in the short term as well as long term due to which the bulls seemed to be struggling to recover.
At the time of writing, the relative strength index (RSI) line was placed at 42.2 points and that of the 14 day SMA line was placed at 54.3 points.
Moreover, a bearish crossover was observed between the RSI and 14 day SMA line, highlighting short term bearishness.