In December, the appetite for risk significantly increased and investors captured impressive gain opportunities in many cryptocurrencies. We saw price increases ranging from 5 to 10 times within weeks. However, experienced investors know that at some point it is necessary to take profits. Now, alarms are going off for a popular altcoin on the Binance exchange because there is a potential sale worth at least 11 million dollars.
IMX Coin Could Drop
According to on-chain data, a whale transferred IMX Coin units worth $11.8 million to the Coinbase exchange. If these assets are sold, a net profit of approximately $5.7 million will be realized. Since the market rally in October 2023, IMX has been one of the best-performing cryptocurrencies, surging by 400%.
The whale wallet 0x3f2d initially transferred more than 5.15 million IMX tokens to another new wallet – 0x48f3. Finally, 0x48f3 sent these tokens to a Coinbase wallet. If a whale that has made a profit is transferring assets to high-volume centralized exchanges, the intention is likely to sell.
An $11.8 million sale for IMX Coin is not negligible. As you know, in the middle of the year, major market makers left crypto, and especially altcoins experienced weak volumes and thin order books. For example, the daily trading volume of IMX Coin in USDT pairing on the Binance exchange is only $15.9 million. This indicates that even a few million dollars in sudden sales can have significant effects on the price.
IMX Coin Whale
According to Spotonchain, the whale accumulated these IMX tokens between February 3, 2022, and November 5, 2023, at an average price of $1.191. Now, there is a possibility of pocketing profits at a satisfying price. Looking at the overall picture of IMX Coin reserves on exchanges, what kind of situation do we face?
Here, the balance of centralized exchanges decreased by over 500,000 IMX tokens. Although the data for the last 30 days shows this, in shorter-term measurements, we now notice that this has started to turn into net inflows. The reason is, after an impressive IMX rally, many investors feel the need to prepare for a potential “sell the news” event that could happen in January. Even without such expectations, experienced investors know that after satisfying gains, it is necessary to take profits at some point.
Nevertheless, IMX is within a significant demand zone between $2.26 and $2.32, and unless it is lost, we may not see a major drop.
