Immutable [IMX] had a 13% surge in price over the past day at press time, while activity turned bullish. Investors remain uncertain about whether speculation drives the recent rally or whether bulls have established a strong foothold in the market.
Fundamentally, the sentiment indicator, which gauges investors’ outlook, remains “neutral,” showing that neither bulls nor bears have gained clear conviction.
AMBCrypto analyzed the market conditions to determine what the probable market direction for IMX remains.
Trading volume supports IMX’s bullish price move
The present surge in price hasn’t happened in isolation and is, in fact, backed by bullish volume analysis.
Price and volume share a key relationship that often establishes what actual investors are doing. For context, when price and volume surge simultaneously, it shows that traders are actively backing the price increase.
Currently, CoinMarketCap reports that volume has risen over 105% to $30 million at the time of this analysis. Given the price’s present direction, the clear bias is that investors are fueling the rally.
The majority of the volume has been led by three exchanges, HTX, Binance, and Upbit. Collectively, these venues drive more than 30% of IMX volume in the market.
The presence of HTX and Upbit suggests that Asian investors currently drive a significant share of the trading volume. Both exchanges account for 19.66% of the market volume.
Capital flows show stronger bullish positioning
There’s a clear bullish positioning that, likewise, shows that bulls are actively positioning for further upside more than sellers.
The Open Interest-weighted Funding Rate, an indicator that combines Open Interest, which represents capital in an asset’s perpetual contracts, and the Funding Rate, which reflects the long or short share of that capital. This shows that long traders have a large dominance.
This is based on the OI-weighted Funding Rate staying positive, with a reading of 0.0040% as of writing. A moderately positive Funding Rate suggests that investors have not taken on excessive exposure, which could help support price stability.
Adding to this outlook has been the growing capital inflow into the perpetual market. Often, capital outflow should dominate when there’s a massive price surge, as seen with IMX. In this case, however, investors increased their exposure as Netflow crossed $243,000 in the past 24 hours.
Spot selling and liquidations remain key risks
Spot remains a key threat to any further surge, as this group has continued to sell as the price surged. The spot Netflow reached $364,000 in the past day, as investors capitalized on the gains. More concerningly, the price surge liquidated more long positions than short positions over the past 24 hours.
Putting numbers to it, longs lost roughly $31,000, while shorts lost $21,000. Ideally, in a bullish market condition, shorts often record more losses than longs do, but in this case, it’s the reverse, which should be a note of caution for investors.
Final Summary
- IMX’s 13% price surge has gained support from rising trading volume and a positive OI-Weighted Funding Rate.
- Spot selling and higher long liquidations remain key risks that could limit IMX’s continued upside.