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GMX Price Analysis: Token Price Faces Bearish Domination at $68

  • The GMX crypto price is trading above the $49.98 golden crossover point.
  • The Market capitalization of the crypto has declined by 10.49% in the current phase.
  • Technical indicators summary suggested neutrality over the current price.

GMX is a decentralized exchange (DEX) that runs on the Arbitrum and the Avalanche blockchain. The platform offers perpetual cryptocurrency futures trading with up to 50x leverage. Users can trade popular cryptocurrencies like BTC, ETH, and more on this platform. GMX has become a leading derivative DEX with a trading volume of over $130 Billion and 283,000 users.

GMX has Given a 24.70% Return During the Monthly Trading Session

GMX token price experienced negative sentiments in January 2024. Crypto investors observe a decline of 22.12% in the month. However, the price has slowly recovered from this fall over the last two months but couldn’t cross above the $68.11 resistance.

The fully diluted market capitalization of GMX is $503 Million, which is close to the current market capitalization. However, the maximum supply of tokens is expected to be 13.25 Million GMXs, making it a deflationary cryptocurrency, though It has a circulation supply of 9.5 Million.

Allocation of the GMX token

Source: gmx.io

The initial token distribution of GMX is as follows:-

  • 45.28% is allocated to XVIX and Gambit migration
  • 15.09% is allocated to the Floor Price Fund
  • 15.09% is allocated to Reserve
  • 15.09% is allocated to Liquidity
  • 7.55% is allocated to Presale Round
  • 1.89% is allocated to Marketing & Partnership

Price-to-Volume Data and Social Dominance

GMX social dominance, price, and volume were doing great till mid-January 2024. The volume was over $109 Million, and the social dominance was above 0.143% during that period. Afterward, the token faced negative sentiments till February 2024.

Although the price and volume have been gaining investors’ attention since mid-February, social dominance is decreasing. Currently, the dominance drops to 0.016% from 0.143%.

24-hour trading volume is at $79 Million and has increased by 29.28%. It is ranked 183rd among all the 9,076 active cryptocurrencies. The current volume-to-market cap ratio (VMR) is at 15.76%, which makes it easier to buy/sell on exchanges.

Technical Analysis of the GMX Token Price

GMX/USD Daily Chart by Tradinview

The price experienced multiple crossovers of the 50-day and the 200-day EMAs, which can also reflect uncertainty in the current trading phase. The RSI reflected a bearish divergence in the momentum, indicating strong selling pressure in the current phase.

The GMX token price surged 65% from the $41.00 decisional point of interest (POI). Afterward, It faced strong resistance from the $68.11 supply zone. The current price is showing uncertainty in the direction, and it is trading between the wide range.

In the last two trading sessions, it formed bearish candles from the $59.85 level. Regarding the technicals, the price may see a short-term fall to the $44.53 demand level. On the flip side, it may reach $79.31 if the price exceeds $68.11.

Summary

GMX is a decentralized exchange that is gaining a lot of attention worldwide. The expected supply of the GMX is 13.25 Million GMX tokens, making it deflationary. The current GMX price is trading at $53.88, facing resistance from the $69.11 level. GMX may see a short-term fall to the $44.53 demand level. For the bullish bias,  the price should close above $68.11.

Technical Levels

  • Resistance Levels: $68.11 and $79.31
  • Support Levels: $49.98 and $41.00
Disclaimer

The views and opinions stated by the author or any people named in this article are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.

Nancy J. Allen: Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.