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$ usd

GMX Price Gets Second Wind and Targets New All-Time High

2 mins
9 March 2023, 11:00 GMT+0000
Updated by Geraint Price
9 March 2023, 11:00 GMT+0000
In Brief
  • GMX reached a new all-time high on Feb. 16.
  • It is trading inside a descending parallel channel.
  • There is support at $59.50.
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The GMX price is correcting after its all-time high. The correction could end near the $59.50 support area. Afterward, an upward movement is expected.

GMX is the native token of the eponymous decentralized spot and perpetual exchange, whose dynamic pricing model is supported by Chainlink oracles. Interest in the exchange has been steadily growing over the past year, as evidenced by the total amount of monthly fees, which are projected to nearly triple by the end of the year. One of the biggest holders of the GMX token is Arthur Hayes, the founder of BitMEX, who has made a significant profit by holding the coin.

GMX Price Retraces After All-Time High

The GMX price has fallen since reaching a new all-time high of $88.71 on Feb. 16. The drop has been contained inside a descending parallel channel, which often contains corrective structures. This means that a breakout from it would be the most likely scenario. 

However, the daily RSI is decreasing and has just fallen below 50. This casts doubt on the possibility of a breakout. 

Moreover, the main support area is at $59.50. It will coincide with the support line of the channel after several days. It is possible that the area coincides with a long-term ascending support line (dashed). Therefore, this confluence of support levels (green circle) could act as the bottom.

GMX Price Movement
GMX/USDT Daily Chart. Source: TradingView

So, if the channel stands, the most common price action would be a bounce at the aforementioned support levels followed by a breakout. If the price reaches a new all-time high, the next resistance would be at $118.50, created by the 2.61 Fib extension (black) of the original increase.

However, a close below $59.50 would invalidate this bullish GMX price forecast. In that case, a fall toward $45 would be likely.

To conclude, the most likely GMX price forecast is a short-term drop toward $59.50 followed by a breakout. If that occurs, the GMX price could increase to a new all-time high of $118.50.

However, a drop below $59.50 would invalidate this bullish outlook. In that case, the GMX price could fall to $45.

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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.