IMX Price Double-Tops Ahead of Immutable X Token Unlocks

IMX crypto price pulled back on Friday as investors waited for the upcoming token unlock that is scheduled for Saturday. The token rose to a high of $0.675, which was slightly above the intraday low of $0.6513. It remains a few points below this year’s high of $0.7500. 

Immutable X token unlock

Immutable X is a relatively small blockchain that plays an important role in the non-fungible token (NFT) industry. It is a layer-2 network that is focused on the non-fungible token (NFT) industry. A layer-2 network is a sidechain that handles transactions at a faster pace and at lower costs than Ethereum.

These networks, which include networks like Polygon, Arbitrum, and Optimism, handle transactions at a significantly lower cost. That’s because Ethereum is well-known for its substantially slow speeds and high transaction costs.

As a result, Immutable X has become a favorite blockchain for developers to launch their NFT collections. Data compiled by CryptoSlam shows that Immutable X handles tens of millions of NFT collections on a daily basis. In January, it has handled $11.3 million NFTs, lower than the $14 million that it processed in December. At its peak, it was handling over $53 million worth of NFTs per month.

Immutable X’s IMX token price retreated slightly ahead of the upcoming token unlock that will happen during the weekend. A token unlock is a situation baked in a blockchain’s tokenomics where some tokens are released periodically. Earlier this week, I wrote about the token unlock for dYdX exchange.

Immutable X will release new tokens worth about $12.2 million, representing about 0.9% of the total tokens in circulation. In most cases, token unlocks is usually a bearish thing for a cryptocurrency because it increases the amount of tokens in circulation.

IMX crypto price prediction

The 4H chart shows that the IMX crypto price has been in a strong bullish trend in the past few months. In this period, the token has managed to move above all moving averages. It also rose and retested the important support level at $0.6464, the highest point on January 17. The coin is also hovering at the 25-day and 50-day moving averages. 

It has also formed a double-top pattern whose neckline is at $0.63. Therefore, there is a likelihood that the coin will have a bearish breakout in the coming days. If this happens, the next key level to watch will be at $0.6.