IMX Price Surge Fueled by Bullish Volume, But Spot Selling Remains a Key Risk

Immutable's token, IMX, has seen a 13% price surge over the past day, with a corresponding increase in trading volume. The rise in price and volume is a bullish sign, indicating that investors are actively backing the price increase. According to CoinMarketCap, the trading volume has risen over 105% to $30 million, with the majority of the volume coming from exchanges HTX, Binance, and Upbit. These exchanges account for more than 30% of the market volume, with HTX and Upbit driving 19.66% of the volume.

The Open Interest-weighted Funding Rate, which combines Open Interest and the Funding Rate, shows a positive reading of 0.0040%. A positive Funding Rate indicates that long traders have a large dominance, suggesting that investors are positioning for further upside. However, the presence of spot selling and higher long liquidations remains a key risk that could limit IMX's continued upside.

The fact that capital outflow should dominate when there's a massive price surge, but instead, investors increased their exposure, is a note of caution for investors. The spot Netflow reached $364,000 in the past day, with investors capitalizing on the gains. Longs lost roughly $31,000, while shorts lost $21,000, indicating that shorts are recording more losses than longs, which is a reverse of what is typically seen in a bullish market condition.