Immutable’s IMX Token Experiences Significant Drop Amid Crypto Market Sell-off
Despite recent positive developments, Immutable’s IMX token faced considerable pressure this week. The IMX price slid to $0.495 on Friday,marking a 36% decline from its May high. The token also lost 86% of its value compared to its peak last year. This drop in price has reduced Immutable’s market cap from $4.6 billion in September to just $958 million.
One of the key reasons behind the decline is the broader crypto market crash. However, this decline occurred despite some positive news. Developers announced that Legends of Elumia,a fast-growing game acquired by Triumph Games in April,has moved to the Immutable network from ronin. The game boasts thousands of monthly active players.
On a positive note, Immutable’s NFT activity remains robust. Guild of Guardians Heroes generated $8.89 million in sales,a 61% increase from the previous week. Guild of Guardians Avatars also saw a 64% rise to $4.2 million. In total,Immutable processed $13.7 million in NFT sales this week, up 69% from the previous period.
The next milestone for the IMX token is a major unlock on June 13. This will release 24.52 million tokens, valued at over $12.7 million. By October, these unlocks will conclude, making IMX a deflationary asset.
From a technical viewpoint, the IMX price hit $0.8100 in May but has since dropped below its 50-day Exponential Moving Average. The Relative Strength Index is nearing oversold territory, suggesting further declines may occur.
The token is likely to test key support at $0.3458, its year-to-date low. A drop here could complete a double-bottom pattern, perhaps leading to a rebound. Tho, a fall below this support would weaken the bullish outlook.
