Immutable X just shot up on the session thanks to fresh partnership news with Gamestop!
Is there legs for further upside in the short-term or will the rally fade soon?
Here’s a chart that I’m looking at:
IMX/BUSD: 1-Hour
IMX/BUSD 1-Hour Crypto Chart
Big news for IMX traders hit the wire today as Gamestop announced plans for an NFT marketplace on the Immutable X! The partnership includes a $100M fund in IMX, intended to be given as grants to NFT content and technology creators.
The announcement sent shares of Gamestop (GME) immediately higher on the session (currently up +4.45%), but IMX bulls got even bigger gains as IMX/BUSD jumped 29% in the past few hours.
So, we’ve got a news trade situation on our hands, and with this news likely to be bullish for IMX in the short-term, considering long positions makes sense at the moment. And while a moonshot from here is a possibility given Gamestop’s proven meme power, it may make sense to consider more conservative trade scenarios.
Given the current pop of more than twice the daily ATR (around $0.52) and an overbought signal on stochastic, the short-term risk-to-reward isn’t that favorable above $4.00 with the major psychological handle of $5.00 right ahead. It’s also likely that there may be some profit taking from short-term traders to cap the gains.
It may be better to consider either a long swing position on a pullback (for more conservative traders) or a scale in entry strategy for a swing or longer-term long position to lower the potential entry price and improve the potential return-on-risk ratio.
If volatility remains high and the market pulls back (an elevated possibility given the broad risk-off vibes lately), a retest of the $3.00 – $3.50 area is a possibly. And if the fundamentals still look bullish for Immutable X, that’s likely where longer-term players, both fundamental & technical, may take a look given the intersection between the rising ‘lows’ pattern and broken previous swing high.
But what do you all think? Is it to the moon from here for IMX or are you looking at trying to get better entry prices? Let us know in the comment section below!
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