GMX Token Descents Below Crucial Levels, Signaling Bearish Control

GMX token's bearish dominance is evident from its movement below key moving averages. The $60 hurdle has been an obstacle for a year, with rejection leading to price drops of around 30%. The $40 level has provided support since the start of the year, but mid-March saw a decline to $40 and further downward pressure, resulting in a 40% sell-off.

GMX Token Plummets Below Crucial Moving Averages, Signaling Bearish Dominance

The GMX token has endured a protracted struggle beneath the pivotal $60 resistance level, highlighting the persistent dominance of sellers in the market. The price chart reveals a yearlong pattern of consistent rejection at $60, with subsequent market corrections dragging prices down by approximately 30% within a matter of days.

Since the beginning of the year, the GMX price has clung to support at $40, but in mid-March, it encountered resistance at $60 and plunged to $40 once more. However, this time, it failed to maintain the $40 level and witnessed a 40% sell-off.

Waning Social Dominance and Trading Volume Drag Price Lower

Data indicates that GMX's social media visibility has declined in recent months. Social dominance and social volume have remained stagnant, but any fluctuations in these metrics could significantly impact the token's price trend.

The trading volume for GMX has also experienced a substantial drop, with a 70% weekly decline. In March, trading volume stood at $100 million, but it has since plummeted to $20 million. This dramatic reduction in trading activity has contributed to a 60% price decline within a month.

Technical Indicators Point to Bearish Forecast

Technical indicators on the GMX chart reinforce the bearish outlook. The Relative Strength Index (RSI) has been trending down, facing resistance from the RSI-based moving average, indicating market weakness. The token's price is trading well below the exponential moving average, underscoring the dominance of sellers.

Based on these technical indicators, analysts anticipate that the GMX price could remain bearish below the 200-day EMA. Positive momentum may only emerge once the $60 resistance level is breached with substantial trading volume.

Descending Triangle Formation Hints at Further Decline

On a 4-hour timeframe, the GMX token has formed a descending triangle pattern. A breakout from this pattern could lead to a decline towards the 200-day exponential moving average.

Alternatively, if the GMX price falls below $26, it could establish a new all-time low. Currently, the token trades at $28.60, representing a 0.14% gain over the past 24 hours.

Conclusion

The GMX token has been in a prolonged downtrend, recently touching a new all-time low. Most technical indicators suggest a bearish outlook. Analysts expect the GMX price to remain suppressed below the 200-day EMA, with a recovery only likely once the $60 resistance level is overcome.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with qualified professionals before making any investment decisions.