IMX in the price zone: Should we take profit right now?

* Immutable may fall to 0.53 USD before rising to 0.71 USD

• A breakout above the resistance at 0.71-0.76 USD may not occur on the first attempt.

Immutable [IMX] has risen 26% in two days, with a 20% increase on Tuesday alone. This growth is accompanied by a significant increase in trading volume, indicating strong interest in this asset. However, despite the quick profits and short-term upward trend, at the time of writing, IMX appears to be accumulating after a long-term downtrend.

Immutable is preparing to challenge the resistance at 0.71 USD after a slight fall.

Source: IMX/USDT on TradingView

The IMX range extends from 0.37 USD to 0.71 USD. The midpoint of the range at 0.545 USD has acted as resistance, followed by support at the end of March. In recent days, the price has surpassed this resistance.

The upper limit of the range marks a lower level in the bearish structure, which explains the expectation for a reversal from the level of 0.71 USD. Another factor is the negative CMF reading of Immutable. Despite the slow rise from 0.37 USD in the past two weeks, the CMF remains below -0.05, indicating that large money has withdrawn from the market.

On the other hand, the Awesome Oscillator sees a bullish crossover above the zero line. The OBV has also risen above the local high from the last week of March.

These factors indicate bullish strength. However, traders need to be aware of the resistance at 0.7 USD due to the bearish structure on the daily chart.

Source: Coinglass

The liquidation heat map for 1 week shows a cluster of liquidation levels that have developed around the levels of 0.575 USD and 0.53 USD. These are short-term price targets for IMX. The zone of 0.69-0.7 USD is also a strong magnetic zone that could pull the price higher.

The liquidation heatmap for 1 month and 3 months highlights the levels of 0.69 USD and 0.76 USD as notable liquidity pockets. As they mark local highs, Immutable may see a bearish reversal from these levels.

Therefore, traders may consider taking profit at these zones and use the retest as support to look for opportunities to enter new long positions.

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