Immutable [IMX] targets $1 as NFT sector surges: Key drivers behind the rally

IMX sees 17% gain, with breakout indicating potential 68% rally. Liquidity inflows and NFT sector growth fuel IMX’s bullish momentum. In the past 24 hours, Immutable [IMX] has dominated the crypto market as the top gainer, with a 17% increase. This bullish momentum has persisted for over four weeks. AMBCrypto’s analysis indicates more upside potential as market activity gears up for a further upward move. IMX breaks out, but that isn’t all IMX has broken through a resistance line to the upside, leading to its rally in the past 24 hours. Market analysis shows that this breakout is likely the first step toward a much larger rally, as IMX trades within a cup-and-handle pattern. Typically, an asset trading within this pattern experiences a rally that mirrors its previous downside movement. Source: TradingView Following this, IMX could see a 68% rally to the upside, reclaiming its $1.064 level. A rally to this level could signal a broader market rally as the overall market gains strength. Why will a rally happen? The potential for an IMX rally has intensified due to the high liquidity flow into the market. AMBCrypto confirmed this based on the Money Flow Index (MFI), which has remained in the positive zone (50-80), with a press time reading of 72.82. A reading this high confirmed that liquidity flow into IMX remained strong, adding to the potential for a further rally. Source: TradingView It’s important to note that when the MFI reaches 80, it indicates that IMX is overbought, and a price correction is likely imminent. Additionally, the Aroon line indicators remained positive, with the Aroon Up line (orange) staying above the Aroon Down line (blue). The Aroon Up was at 35.71%, while the Aroon Down was at 0.00%. This confirmed that the uptrend was still in place, and the rally remained intact. Key fundamentals driving liquidity inflow The liquidity inflow into IMX is linked to the growth of the NFT applications sector, a category that IMX falls under. According to Artemis, the NFT application sector is now the third-fastest-growing sector, at 47.6%, following the Bitcoin ecosystem and AI sectors. Source: Artemis This growth shows renewed investor interest, particularly in assets likely to deliver higher returns, with IMX being a top choice. Continued growth in this sector suggests that IMX will continue to attract liquidity, adding momentum for a potential rally. Source: https://ambcrypto.com/imx-targets-1-as-nft-sector-surges-key-drivers-behind-the-rally/