Immutable X (IMX) Loses Upward Momentum — Deeper Retracement Next but Still Bullish Overall

Key Takeaways

• IMX completed a five-wave advance from $0.38 to $0.81.
• RSI divergence indicates weakening bullish momentum.
• Wave (ii) correction likely targets $0.60 or $0.52.

Immutable (IMX) has rebounded from a prolonged multi-month downtrend and completed a clear five-wave impulsive structure.

However, the momentum is now showing early signs of exhaustion.

A correction seems imminent as bearish RSI divergence forms and the price approaches a key 0.236 Fibonacci resistance zone.

The medium-term outlook remains constructive, but a healthy pullback is likely before continuation.

IMX Price Analysis

The 4-hour chart reveals a textbook W-X-Y corrective structure that bottomed around $0.38 on April 7.

This level aligned with strong historical support and marked the end of a multi-month downtrend.

Following the low, IMX initiated a five-wave impulsive advance, reclaiming key resistance at $0.52 and reaching as high as $0.81 on May 11.

Currently, price is testing the 0.236 Fibonacci retracement of the entire macro decline from $2.22 down to $0.38.

This $0.81 level is critical and acts as a natural resistance zone.

A failure to cleanly break above this area would likely confirm the end of the first wave (1) and trigger a corrective phase in wave (2).

The Relative Strength Index (RSI) on the higher time frame remains below overbought but is trending downward, signaling a loss of bullish momentum.

Additionally, the macro descending trendline from the $2.20 region has not been tested yet, which may be reserved for a future wave (3) attempt after the correction completes.

If IMX retraces according to typical Elliott Wave proportions, the $0.601 and $0.52 levels (the 0.5 and 0.618 retracement of wave (1)) are strong zones for wave (2) to conclude.

This would be expected before continuing toward $1.11 and higher as the first macro higher low in a new bull phase.

IMX Price Prediction

The 1-hour chart confirms that the initial five-wave impulse has likely completed, with wave (v) peaking near $0.81.

This was followed by a drop to $0.66 in wave (a) and a partial recovery in wave (b), which is currently unfolding.

The structure suggests a classic ABC correction is underway, with wave (c) expected to extend further down.

Wave (c) could likely reach the $0.601 level (0.5 retracement), or even deeper to $0.52 (0.618 retracement), aligning with wave (iv) of a lesser degree and offering strong structural support.

These levels also intersect with prior consolidation zones, increasing buyers’ likelihood of stepping in there.

The RSI on the 1-hour chart has printed a clear bearish divergence, with lower highs in RSI while price attempted higher highs.

This further supports the thesis that a corrective wave is unfolding, rather than a continuation.

In the near term, traders should anticipate further downside, especially if $0.70 fails to hold.

A final wave (c) toward $0.60–$0.52 would complete the correction and reset indicators for a larger rally.

Once wave (2) ends, wave (3) could target the 0.5 retracements of the larger macro structure near $1.29.

Key Levels to Watch

• Resistance: $0.81 (0.236 macro Fib).
• Correction Targets: $0.601 (0.5 retracement), $0.520 (0.618).
• Macro Support: $0.380.
• Next Bullish Targets: $1.115 (Fib cluster), $1.29–$1.51 (wave iii potential).
• Invalidation: Drop below $0.38.