Key Takeaways
What caused Immutable to surge 17%?
The surge was driven by strong buyer accumulation, with retail and whale participation, alongside increased capital flow and market confidence.
What are the potential risks for IMX after its recent surge?
The overbought conditions, indicated by the Stochastic RSI and RSI reaching extreme levels, suggest potential volatility and a risk of retracement.
Immutable [IMX] surged 17.1%, reaching an 8-month high of $0.97 before retracing to $0.87 at the time of writing.
Over the same period, the altcoin’s volume jumped 87% to $288 million while its market cap reached an 8-month high of $1.85 billion, indicating steady capital flow.
Retail buyers stage a comeback
After two consecutive days of sellers’ dominance, buyers staged a strong comeback into the market and displaced them.
According to Coinalyze, Immutable saw $16.66 million in Buy Volume compared to $15.77 million in Sell Volume, at press time.
Source: Coinalyze
As a result, the altcoin recorded a positive Buy Sell Delta of 895k, a clear sign of substantial spot aggressive accumulation.
Furthermore, exchange activities also echoed this accumulation trend.
According to CoinGlass, Immutable has recorded negative Spot Netflow for seven consecutive days. At the time of writing, Netflow was -$1.36 million, indicating higher outflows compared to inflows, a clear sign of accumulation.
Source: CoinGlass
Typically, when buyers dominate the market, it reflects strong bullish sentiment and often results in upward pressure on price.
Immutable whales dominate the Futures market
Surprisingly, while retailers have dominated the spot market, whales jumped into Futures to take strategic positions.
Futures Average Order Size data from CryptoQuant showed that large order whales have dominated the Futures market.
Source: CryptoQuant
When this metric shows whale dominance, it means that whales have increased their participation in futures on either shorts or longs.
As a result, Futures Volume Bubble Map data flashed heating, indicating increased participation. Usually, increased speculation can fuel stronger and faster market moves, either to the upside or the downside.
Source: CryptoQuant
However, these whales are aggressively shorting the market. In fact, Immutable’s Long Short Ratio fell to 0.956, as of writing, where shorts accounted for 51% while longs accounted for 48.8%.
Source: Coinglass
Typically, when shorts dominate the market, it means most participants anticipate prices to decline. Thus, whales dominating futures are particularly bearish.
IMX momentum indicators overheat
According to AMBCrypto’s analysis, Immutable staged a strong uptick as both retail and whales increased participation in the market.
As a result, the altcoin’s Stochastic RSI surged to 100 at press time, indicating overbought conditions. Simultaneously, its Relative Strength Index (RSI) climbed to 80, further confirming that the asset had entered overbought territory.
Source: Tradingview
Usually, when these metrics reach such extreme levels, it signals strong upward momentum but also warns of looming volatility.
Having said that, if capital from retail and whales continues to flow, IMX will reclaim $0.96 and target $1.07.
Conversely, if profit takers jump into the market to capitalise on the rally, any downward pressure could send IMX back to $0.73.