Immutable (IMX), a pivotal layer-2 blockchain designed to enhance Ethereum’s scalability, particularly for Web3 gaming and NFT minting, is currently navigating difficult financial waves. This platform, which has been a beacon for Web3 game developers and enthusiasts, earns its revenue by imposing fees on the initial sale of assets and NFTs.
Despite the growing interest in gaming and meme coin tokens among investors, IMX’s value is experiencing a sharp decline. This downturn is largely due to market participants bracing for a significant token unlock event slated for Friday, which is expected to amplify selling pressure on the gaming-focused token, potentially leading to a more pronounced correction.
This week, Immutable is on the cusp of a critical market event with the scheduled release of approximately 34.19 million IMX tokens, valued at $101.55 million. These tokens, once unlocked, will be allocated to individuals that participated in private sales in addition to funding further ecosystem and project development, as per information from Tokenunlocks.
It’s anticipated that tokens worth $67.39 million, earmarked for project and ecosystem enhancement, will be introduced into the market. This influx of tokens is poised to heighten selling pressure on IMX, exacerbating the token’s recent downturn.
Supporting the pessimistic outlook for IMX’s price are three key on-chain metrics. The Active Addresses metric, which serves as an indicator of blockchain activity and market demand, has shown a consistent decline throughout March. This metric’s downturn underscores a diminishing engagement and interest among market participants, further contributing to the bearish sentiment surrounding IMX’s immediate future.
Immutable’s native token, IMX, has seen a notable decrease in value over the last 24 hours, priced at $2.58 at the press time. This represents a decline of 8.34%, with the market capitalization retracting to $3.5 billion, positioning IMX at rank 33 in market size. Trade volume surged by 39.74%, reaching $107 million.
The total and maximum supply of IMX tokens is capped at 2 billion. Today’s trading pattern on the chart has depicted a downtrend, with the price moving from a high of $2.8187 to its current price. Over the past week, IMX price has seen a decrease of more than 25%, indicating a downward trend.
The technical indicators for IMX reveal a downward trend in its recent trading sessions. The Relative Strength Index (RSI) has dipped below the midline to 36.11, hinting at growing selling pressure. The Awesome Oscillator (AO) shows red bars, indicating bearish momentum is currently in play. As observed on the chart, this downturn is part of a wider pattern, with prices peaking and then retracting over time.
