Another buy opportunity for IMX before next leg up

• Immutable X price has climbed 98% since the third week of January.
• IMX could correct 7% to give the bulls a chance to refresh before attempting a new local top.
• The bearish thesis will be invalidated if the gaming token clears the $3.3759 range high.

ImmutableX (IMX) price has been an outlier, recording a sustained series of higher highs since before Christmas. Based on the outlook, sidelined investors could soon have the opportunity to buy IMX at discounted rates as on-chain metrics signal a 7% correction.

Also Read: Immutable X price volatility to increase with $2.19 million worth of IMX tokens flooding markets daily

ImmutableX price could fall 7%

ImmutableX (IMX) price trading above the 50% Fibonacci level, measured from a market range of between $1.6276 and $3.3775. The gaming token enjoys strong support with the 50, 100, and 200-day Simple Moving Averages (SMA) at $2.1836, $1.9076, and $1.2600 leaning north, which shows it’s the path with the least resistance.

However, while the bullish outlook abounds, IMX is overbought, which signals buyer exhaustion and could provide another entry opportunity for late investors.

The Relative Strength Index (RSI) points to this effect, inclined south as it approaches the 70 threshold. With this showing falling momentum, ImmutableX price could drop 7% to pivot around $2.9346 before another leg up.

If the aforementioned level fails to hold as support, ImmutableX price could extend the fall to the 50% Fibonacci level at $2.5026.

IMX/USDT 1-day chart

On-chain metrics support correction thesis for ImmutableX price

The social dominance and social volume metrics for IMX continue to maintain notable spikes, increasing the odds of the ImmutableX price going the other direction amid the fear of missing out (FOMO). During instances of sudden price hikes, traders tend to flock to the market with the highest expectation of extended gains. In reality, however, these traders are often too late. By the time they join out of FOMO, the surge is already at its end, and traders see losses.

IMX Santiment: Social dominance, social volume

The daily active addresses metric has also plunged, showing the amount of crowd interaction for IMX is dropping. This comes alongside a reduced number of new addresses being created to interact with the gaming token. This metric, coupled with reduced network growth suggesting slowing user adoption and shrinking development activity, increases the odds for a price drop.  

IMX Santiment: daily active addresses, network growth, development activity

On the flip side, if bulls fasten their grip on IMX, ImmutableX price could push north, clearing the range high of $3.1651. In a highly bullish case, the gains could extend to the $3.5000 target, nearly 10% above current levels. 

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