GMX Big Drop In Price With 7% In A Day
- GMX token experiences a 7.9% decline, becoming the worst-performing cryptocurrency in the top 100 by market capitalization.
- The token drops to just above $50 per token, reaching its lowest level in over a month.
- Decreasing trade value locked (TVL) in the protocol’s smart contracts indicates struggles to retain crypto capital, impacting the token’s performance amidst a competitive crypto market.
GMX, the governance and utility token powering an Arbitrum-based decentralized exchange (DEX) for trading perpetual cryptocurrency futures with leverage, has faced a challenging 24 hours in the market.
According to TradingView, the token has tanked around 7.9%, making it the worst-performing cryptocurrency among the top 100 by market capitalization.
Over the past day, GMX/USD dropped to just above $50 per token, marking a disappointing performance when compared to other tokens that experienced only minor declines. Bitcoin’s attempts to reclaim the $30,000 mark were underway during this period.
The recent decline has led GMX to its lowest levels in over a month, with the cryptocurrency now down by 19.2% from its earlier highs of around $62.
Despite the significant drop, there is no apparent new catalyst behind GMX’s recent price decline. However, upon investigating DeFiLlama, it becomes evident that the protocol’s trade value locked (TVL) in its smart contracts has been steadily decreasing on both Arbitrum and Avalanche in recent months.
The falling TVL, particularly denominated in ETH, indicates that the protocol is struggling to retain crypto capital, which might explain the recent underperformance of the GMX token.
As the market continues to fluctuate, GMX faces challenges in maintaining its position within the highly competitive cryptocurrency landscape. Investors and analysts will closely monitor further developments and any potential catalysts that might impact the token’s performance in the coming days.
Looking at the current price, we can see the token is trading below the 38.2% Fib level and just above $50. This price zone is the last support level when there is no support level for GMX to support.
It seems that the bulls are dominating at the moment. Investors should wait for the next beneficial signals to buy. But now, with the severe drop in price and worrying performance, the token is not the right choice for us.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.