Immutable X partners with Polygon Labs: IMX is down by 12%

Key takeaways

• Polygon Labs has partnered with Immutable X to launch the Immutable zkEVM.

• IMX is down by 12% today despite the strategic partnership announced between Polygon Labs and Immutable X.

• The broader crypto market is underperforming after an excellent rally yesterday.

Polygon Labs and Immutable X announce a strategic partnership

Polygon Labs announced in a blog post on Monday that it has partnered with Immutable X to launch the Immutable zkEVM. 

Polygon Labs added that building on Immutable zkEVM with the Immutable Platform would make developing Web3-enabled games faster, easier and less risky for large game studios and independent developers alike. 

Despite this latest cryptocurrency news, IMX, the native token of the Immutable X ecosystem, has been underperforming over the past few hours. IMX is down by 12% in the last 24 hours and could drop lower if the trend continues.

At press time, the price of Immutable X stands at $1.276 and could trade lower as the broader market retreats. The total cryptocurrency market cap now stands at $1.16 trillion, down by more than 1% today.

Bitcoin and the other major cryptocurrencies have also been underperforming, with Bitcoin now trading below the $28k level.

Key levels to watch

The IMX/USD 4-hour chart is currently bearish, as Immutable X has been underperforming over the last few hours. The technical indicators show that IMX is shedding some of the profits it generated over the past few days.

The MACD line is still above the neutral zone but is heading into the negative region, indicating that the market is turning bearish. The 14-day RSI of 43 also shows that IMX is close to the oversold region if the bearish trend continues.

If the bears remain in control, IMX could drop below the first major support level at $0.800 over the next few hours or days. However, unless there is a massive decline in prices, IMX should comfortably defend its price above the second major resistance level at $0.700.

Where to buy Immutable X now