The Immutable X price popped by more than 15% on Monday as investors cheered the new announcement by Binance. The IMX token is trading at $4.17, which is about 25% above the lowest level during the weekend.
Why is IMX surging?
For starters, Immutable X is a layer 2 (L2) network that helps developers scale their non-fungible tokens (NFT).
For starters, Ethereum has grown to become the leading player in the NFT industry. It has been used to build some of the leading marketplaces like OpenSea.
However, Ethereum has some challenges because of how it was built. For example, it is a slow platform, meaning that transactions take a long time to be confirmed. It is also one of the most expensive platforms in the industry.
This is where layer 2 platforms like Polygon, Loopring, and Immutable X come in. These platforms seek to help developers optimize their decentralized applications (DAPPs). As a result, their users are able to experience zero gas fees, instant trades, and a carbon-neutral ecosystem. It has about 9000 transactions per second, making it faster than Ethereum.
The Immutable X price is rising today because Binance announced that it will list the token in its ecosystem. This means that millions of people who use Binance will be able to buy and sell the token within seconds. This is a major achievement because Binance has the biggest market share in the industry. The company said;
‘Binance will list Alchemy Pay (ACH) and Immutable X (IMX) and will open trading for ACH/BTC, ACH/BUSD, ACH/USDT, IMX/BTC, IMX/BUSD, and IMX/USDT trading pairs at 2022-01-10 10:00 (UTC).’
Historically, cryptocurrencies tend to do well when they get listed by a major exchange like Coinbase and Binance. However, these gains are often short-lived.
Immutable X price prediction
The four-hour chart shows that the IMX price jumped sharply on Monday after the announcement by Binance. As it rose, fhe price moved above the key resistance at $4.03, which was the lowest level on December 20th. It also moved slightly above the 25-day and 50-day moving averages.
Therefore, I believe that this jump is a dead-cat bounce, meaning that the price will likely resume the bearish trend in the near term. If this happens, the next key level to watch will be at $3.
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