IMX Surge Indicates Potential for Further Rally Amid Growing NFT Sector and Strong Liquidity Inflows

Immutable (IMX) has recorded a significant surge as the non-fungible token (NFT) sector continues to gain traction, drawing investor interest and market momentum.

• IMX sees a 17% gain, with breakout indicating potential 68% rally.

• Liquidity inflows and NFT sector growth fuel IMX’s bullish momentum.

In the past 24 hours, Immutable [IMX] has dominated the crypto market as the top gainer, achieving a notable 17% increase. This bullish momentum has persisted for over four weeks. COINOTAG’s analysis suggests there is still more upside potential as market activity gears up for a further upward move.

IMX breaks out, but that isn’t all

Recently, IMX has broken through a resistance line to the upside, leading to significant gains in the past 24 hours. Market analysis indicates that this breakout may be just the initial stage of a much larger rally, as IMX is currently trading within a cup-and-handle pattern. This specific pattern typically results in a rally that mirrors its previous downside movement.

Source: TradingView

Following this breakout, IMX could potentially rally up to 68%, reclaiming its $1.064 level. A rally to this level could also signal a broader market surge as overall market conditions continue to strengthen.

Why will a rally happen?

The potential for an IMX rally is bolstered by robust liquidity flows into the market. COINOTAG confirms this through the Money Flow Index (MFI), which has consistently remained in the positive zone (50-80), peaking at a press-time reading of 72.82.

A high MFI reading indicates strong liquidity flow into IMX, driving expectations for a further price rally. However, it’s crucial to note that when the MFI reaches 80, IMX is typically overbought, implying a potential price correction could follow.

Source: TradingView

Moreover, the Aroon line indicators indicate a continuing uptrend, with Aroon Up (orange) at 35.71%, remaining above Aroon Down (blue) at 0.00%. This confirms that the upward momentum is sustained and the rally is likely to continue.

Key fundamentals driving liquidity inflow

The increased liquidity flow into IMX is attributed to the expanding NFT applications sector, which IMX is part of. According to Artemis, this sector is now the third fastest-growing, recording a growth rate of 47.6%, just behind the Bitcoin ecosystem and AI sectors.

Source: Artemis

This growth reflects a resurgence of investor interest in assets expected to yield higher returns, with IMX being a primary candidate. The sustained expansion in this sector is likely to further attract liquidity, adding momentum to IMX’s potential rally.

Conclusion

In summary, Immutable (IMX) is witnessing a significant upward trend driven by robust liquidity inflows and the ongoing growth of the NFT sector. As market conditions strengthen, the potential for IMX to reach new highs appears increasingly feasible, indicating a promising outlook for investors.