Key Takeaways
The IMX price has increased since Aug. 5, creating several higher lows alongside an ascending support trend line. Despite this increase, it failed to break out from the minor resistance of $1.85.
Can IMX confirm the reversal by breaking out above this resistance, or will it falter and drop below support instead? Let’s find out.
The weekly time frame chart shows that the IMX price has fallen since its yearly high of $3.97 in March. The decrease led to a low of $0.92 in August.
This seemingly caused a breakdown below the $1.52 horizontal area, a critical level that has acted as resistance since August 2022.
However, the price regained its footing and reclaimed the area in September. This week, it could be validating it as support.
Additionally, the weekly Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are leaning bullish. The RSI has reached the 50 trend line from below, while the MACD has just made a bullish cross (black circle).
So, the weekly time frame suggests that IMX will likely bounce at the $1.52 area and validate it as support. If that happens, the next resistance will be at $2.60, 70% above the current price.
The daily time frame wave count shows that the IMX price broke out from a descending resistance trend line in August. Before doing so, it made three unsuccessful breakout attempts (black icons).
The RSI and MACD turned bullish at the time of the breakout. The RSI increased above 50, and the MACD crossed into positive territory.
However, the IMX price failed to break out from the $1.85 horizontal resistance area. Rather, it was rejected (black circle) and started a downward movement. Then, the MACD made a bearish cross, while the RSI risks falling below 50.
The closest support is $1.40, created by an ascending support trend line (white). So, technical indicators and the price action from the daily time frame give mixed readings.
While the weekly IMX readings are bullish, the daily chart is undetermined. Whether IMX bounces at the $1.52 horizontal area or breaks down below it can determine the future trend’s direction.