Immutable X's IMX token saw its price decline 6.56% over the past 24 hours to $0.5592. The cryptocurrency currently has a market capitalization of $627.34 million and saw $17.14 million in trading volume over the last day.

In this in-depth analysis, we’ll examine the critical metrics for IMX across various timeframes to uncover insights that can inform trading strategies.

Zooming in on the 1-hour timeframe, IMX has fallen a slight 0.41%. This indicates some minor near-term selling pressure, likely from short-term traders locking in profits from IMX's run-up earlier this week. However, the modest pullback suggests buyers are still eager to accumulate on dips.

Expanding the view to 7 days shows the extent of the recent slide, with IMX down 13.12% during this period. This signals a decisive shift in the short-term trend from uptrend to downtrend as sellers have wrested control. The price is now testing the 21-day moving average, a key potential support level to watch.

On the monthly chart, the selloff is even more pronounced, with IMX cratering 25.96% over the past 30 days. This reflects an increase in negative momentum as macroeconomic headwinds weigh on cryptocurrencies. However, oversold readings indicate the bulk of selling may have already occurred.

Finally, taking a wide lens view over the past 6 months reveals IMX remains stuck in a prolonged bear market along with the broader digital asset sector. Although risks remain tilted to the downside, glimmers of bullishness are starting to shine through the darkness as prices reach attractive entry levels for long-term investors.

What's Next for Immutable X? Upside and Downside Price Targets

When forecasting potential price action for IMX, traders will be carefully monitoring these key levels:

To the upside, initial resistance lies around $0.63, the August highs. Beyond that, the bullish target is the 50-day moving average, currently around $0.68. This is reinforced by the 0.618 Fibonacci retracement level.

If the buying momentum accelerates, the next threshold for IMX to cross is the 200-day moving average near $0.82. Above that, the 0.786 Fib level at $0.96 represents the final target before hitting $1.00, a major psychological barrier.

On the downside, first support lies at $0.50, then the 2022 lows around $0.45. If selling pressure persists, the 0.786 Fib level sits at $0.35. Below that is the ultimate bear market target at the COVID-19 crash bottom of $0.22.

Should You Buy Immutable X in This Bear Market?

For long-term cryptocurrency investors, IMX looks appealing at current levels given the deeply oversold conditions and highly depressed prices. According to blockchain analytics firm Santiment, the percentage of circulating IMX supply held by addresses that hold between 10,000 to 1 million tokens recently hit an all-time high - a strongly bullish sign that whales are accumulating.

However, in the short-term, risks remain skewed to the downside until a clear trend change emerges. Prudent investors may consider scaling into a position over time, buying smaller amounts on dips rather than allocating their entire investment capital all at once. This dollar-cost averaging approach allows for building a low-cost basis while minimizing downside risk.

Of course, given the extreme volatility still characterizing cryptocurrency markets, position sizing is critical. Investors should only allocate as much capital as they can stomach losing in a worst-case scenario. But for those willing to embrace the volatility, buying high-quality altcoins like Immutable X near cycle lows could generate substantial ROI over a multi-year investment horizon.

Should You Buy IMX Now or Wait for Lower Prices?

With Immutable X price currently hovering around 7-month lows, investors face the critical question of whether to buy now or wait for a potential deeper pullback. There are compelling arguments on both sides.

Buying now allows capitalizing on extremely depressed prices before a potential trend reversal kicks in. According to blockchain intelligence firm Glassnode, IMX is currently oscillating near historical support levels, indicating the potential for a bullish impulse once selling exhausts itself.

Also, on-chain data reveals long-term IMX holders are still accumulating tokens and refusing to capitulate - a sign of confidence in the network's long-term outlook. DCAing in at current levels allows securing an excellent entry point before the next bull run.

On the other hand, attempting to precisely time THE bottom is difficult. With macro headwinds still persisting, another capitulation event could occur to wash out remaining leverage and weak hands. This could spark a plunge to retest the COVID-19 crash lows around $0.22. So patient investors may improve their entry price by waiting for confirmation of a definitive trend change.

Given the conflicting signals, a balanced approach may be prudent. Consider initially buying a partial position at current prices, then holding firepower in reserve to scale in lower if prices continue falling. This blended strategy helps gain exposure to upside potential while retaining the flexibility to cost average down.

How Low Can Immutable X Decline in the Ongoing Bear Trend?

Given the brutal carnage across the crypto markets in 2022, traders are wondering how much further IMX could fall if the ongoing bear trend persists. Let's analyze key support levels on the charts to gain insights into where buyers could emerge to arrest further declines.

The first critical support zone lies between $0.35 and $0.40. This area corresponds with the 0.786 Fibonacci retracement level of the previous uptrend, making it important for bulls to defend. If selling pressure overwhelms buyers here, it opens the door to a drop towards the major psychological support at $0.25.

Below $0.25, the final support zone sits around $0.20 which represents the COVID-19 pandemic crash low. IMX bottomed around $0.22 in March 2020 amidst a liquidity crisis, so this area is likely to see significant buying interest given the price discounts. However, bears would need to drive a tremendous amount of capitulation to reach this downside target.

It’s also worth noting the $0.10 and $0.15 levels may offer tentative support on the way down as round psychological numbers often act as short-term price floors. But overall, the data suggests a drop to the $0.20 zone would likely represent the maximum downside potential for IMX in the current bearish macro environment.

While further pain cannot be ruled out, IMX remains one of the most promising layer 2 scaling solutions on Ethereum. Once the macro backdrop stabilizes and risk appetite returns to markets, substantial upside is likely from around current prices. But in the short-term, savvy traders will keep risk management top of mind as choppy conditions persist.