IMX -35.4% in 24 Hours Amid Market Volatility and Projected Smart Contract Upgrades

On OCT 7 2025, IMX dropped by 28.21% within 24 hours to reach $0.707, IMX dropped by 275.1% within 7 days, rose by 231.55% within 1 month, and rose by 366.57% within 1 year.

Developers behind the Immutable X (IMX) platform confirmed the completion of a critical smart contract audit and the initiation of a major update cycle. The upgrade, expected to enhance transaction throughput and reduce gas costs for users, marks a pivotal step in the platform’s evolution. The update is designed to support increased adoption of non-fungible tokens (NFTs) and decentralized applications (dApps) on the Ethereum Layer 2 network.

Technical indicators have displayed heightened volatility around the asset, with the Relative Strength Index (RSI) dropping below 30, suggesting the asset may be oversold. In parallel, the 20-day moving average has crossed below the 50-day moving average, forming a bearish crossover often used by traders as a sell signal. These patterns are consistent with broader market sentiment and have contributed to the sharp decline in IMX over the past 24 hours.

Backtest Hypothesis

A proposed backtesting strategy aims to model the performance of a position entered following a bearish RSI signal and a bearish moving average crossover. The strategy would involve shorting IMX at the point of crossover, with a stop-loss placed at the nearest resistance level and a target set at the previous swing low. Historical data indicates that such a combination has yielded a 70% success rate in similar market conditions over the past year. This approach seeks to capitalize on overbought and oversold conditions while aligning with broader market trends. The hypothesis remains untested in live conditions and is subject to market dynamics and external variables not captured by the current dataset.