Immutable X and its accumulation scenario
there are lots of assets in the realm of cryptocurrencies which are under valued or over sold. from the aspect of technical analysis and life cycles if these assets face a gradual demand over time, then they might be in their accumulation phase.
let's take a look on some metrics and indicator in order to check this scenario for a well known project with IMX ticker.
from March 8th, the project faces a spike in its volume. it doesn't necessarily mean that there are a lot of buyers in this time zone, but we can say that it is experiencing a relatively high trading volume.
at the same time period, the ratio of daily on-chain transaction volume in profit to loss is showing us relatively high values which is an indication to the project's profitability. An important question is that: "the price is far away from its ATH and we are almost 33% away from the ATL. how is it possible for the investors to do their transaction in profit in the past 50 days? " the answer has several parts, one part can be referred to the fact that there are new wave of investors involving themselves to IMX . how can we expand this theory?
in March 15th, there was a huge spike in total volume for NFT worth more than 100K USD and from April 15th till now we are witnessing a consistent average $33M NFT being traded on the platform(the purple bars). besides this we can spot a consistent whale transaction count(>1M USD) in the past week. whale transaction might be good sign for entering to the project step by step, but there is one other indicator which its low values is an indication to lower entry risk...
Weighted sentiment in its low values is an indication to lower attention to the project which can be referred to lower greed existed in the price that again reduces the risk of entry to the project.
and the last, but not the least is MVRV Z-score going under its balance level(0). this is telling us that the market price of the asset is lower than its realized price. An strong sign of the accumulation phase which is supported by the whale transaction in the past 7 days.
Thanks for reading!
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