Immutable token x is caught in a deep bear market ahead of a major token unlock and as the outlook for non-fungible tokens darkens.
Immutable x (IMX) fell back to $1,958 on Sept. 3, down 67% from its year-to-date high of $3.74. It was also hovering around its lowest point since November of last year.
Immutable x, the popular layer-2 blockchain for gaming and nfts, will be in the spotlight on Thursday, September 6, as it unlocks more tokens. According to x/” target=”_blank” rel=””>CMCThe network will unlock 32.47 million IMX tokens worth over $41.2 million, resulting in further dilution for existing holders.
These new tokens will be moved into project development, ecosystem development, private sales, and the foundation reserve. Immutable x is expected to unlock over 113.7 million more tokens by December of this year.
According x” target=”_blank” rel=””>Token UnlocksImmutable has unlocked over 1.58 billion tokens and has 416.15 million remaining. If all goes well, the vesting schedule will end in November next year.
Token unlocks are considered negative catalysts for a cryptocurrency because they dilute existing holders, especially stakers. According to their website, staking rewards are generated from the 20% protocol fee and then distributed to stakers every 14 days. As such, additional tokens in these pools often lead to lower returns.
The Immutable x token has also fallen as concerns about the nft industry continue. Recent data shows that monthly nft sales and transactions have continued to decline this year. According to CryptoSlamTotal nft sales over the past 30 days fell by more than 24% to $16.8 million. Buyers and sellers also fell by 41% and 25%, respectively.
On the positive side, there are signs that the network’s gaming ecosystem is doing well. This week, Immutable x partnered with Portal, a leading Web3 distribution platform. This partnership will lead to better distribution of games built on Immutable x and liquidity improvements.
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Immutable x Price Approaches Key Support
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The IMX token has fallen from the year-to-date high of $3.7570 to $1,200, the 78.6% Fibonacci retracement point. It formed a death cross in June and then retested the key resistance point at $1.7185 in August. A breakout and retest pattern is a popular signal for a continuation.
Therefore, the Immutable x token is likely to fall and retest the important support at $0.9043, its lowest level in August. A drop below that point will trigger further declines.
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