Key Takeaways
What’s driving the price of IMX?
Whale orders, increased chain activity, and a technical pattern breakout drove the 11% price surge of IMX.
What’s next for gaming in general?
The gaming sector could be revived if the current capital rotation extends into other tokens.
On the 24th of September, the gaming sector appeared to be reviving, with Immutable X [IMX] leading with 11% gains on the day. IMX was second among top gainers across the whole crypto market.
The market cap of the entire sector rose by only a percent, while its volume stood at $3.83 billion.
For IMX, a couple of factors were responsible for its surge that made it outpace even the largest capped crypto in this sector, Render Network [RENDER]. Only Beam [BEAM] came close, with an uptick of 8%.
Why is IMX crypto up?
Diving into the details of this surge, it uncovered the real reasons why the price was up by 11%. First, Market Prophit reported a shift in sentiment toward this sector. The crowd was bullish on IMX.
On top of that, capital was flowing into the sector; specifically, the IMX market cap added about $109.9 million in capital. This followed the launch of their mobile gaming division, which accounts for a $121B market.
Additionally, whales were betting hard on the gaming crypto. They were responsible for the capital rotation into IMX. These whales have been accumulating IMX since its price traded at $0.40 in late June.
Source: CryptoQuant
Still, that was not the end. The total number of unique active addresses spiked by 1.33% in 24 hours, per CryptoQuant. Similarly, active sending addresses rose by 1.39%, indicating activity on the chain.
Can the IMX crypto trend hold?
The price action on the hourly chart showed a potential shift in market structure. IMX broke a descending trendline with the price rising from $0.65 to $0.76 when writing.
The momentum was confirmed by the MACD indicator reading, which was green. The evidence of capital inflow was seconded by the rising Chaikin Money Flow (CMF), which was at 0.20.
Source: TradingView
If the gaming sector continues to gain strength, the price of IMX could rally, reclaiming $1. The $1 level was a few points above its high, seen in the past week.
However, failure to stay above the broken trendline could invalidate the bullish prediction. Having said that, how does this impact the broader crypto gaming sector tokens?
Final take on gaming sector
On the day, the gaming sector was among the biggest movers. Apart from IMX and BEAM, GALA, ApeCoin [APE], and Four [FORM] also contributed to the rise in market cap.
The top gainer was a Toncoin [TON] gaming coin, Blum, which rose by 25%, as per CoinMarketCap data.
If the gaming sector as a whole replicates the IMX performance, it could surpass its $17B market cap.