Immutable token retreated this week as market participants reacted to the broader crypto market crash. It also dropped despite welcoming a popular game to its platform and a surge in Guild of Guardians NFT sales.
Immutable (IMX) fell to $0.495 on Friday, down 36% from its May peak and 86% from its high last year. The sharp decline has dragged its market capitalization from $4.6 billion in September to $958 million.
The decline came even after developers announced that Legends of Elumia had migrated to the Immutable network from Ronin. This is notable, as Legends is a fast-growing title acquired by Triumph Games in April and boasts thousands of monthly active players.
Meanwhile, Immutable’s NFT activity showed notable strength this week. Data indicates that Guild of Guardians Heroes generated $8.89 million in sales, a 61% increase from the same period last week. Guild of Guardians Avatars sales rose by 64% to $4.2 million. In total, Immutable processed $13.7 million in NFT sales this week, up 69% from the previous period.
The next key catalyst for the IMX token is a major unlock scheduled for June 13. It will release 24.52 million tokens, valued at over $12.7 million. Fortunately for investors, IMX unlocks will conclude in October, transitioning the token into a deflationary asset.
Immutable price technical analysis
The daily chart shows that the IMX price peaked at $0.8100 in May as most cryptocurrencies rallied. It then pulled back to $0.50, its lowest point since May 8.
IMX has since dropped below its 50-day Exponential Moving Average, while both lines of the MACD have crossed below the zero line. The Relative Strength Index has also tilted downward and is approaching oversold territory.
Given these signals, the token will likely continue falling as sellers target key support at $0.3458, its year-to-date low. A drop to this level would complete a double-bottom pattern, which could signal a rebound back to the neckline at $0.8100. However, a decisive move below that support would invalidate the bullish setup.
