Analysis

GMX Big Drop In Price With 7% In A Day

Key Points:

  • 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.

Source: DefiLlama

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.

GMX price chart. Source: TradingView

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.

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

Recent Posts

BlockDAG Surges Past $170M as BDAG250 Bonus End Countdown Begins – Aave Targets $400 & Solana Shines with Scalability

BlockDAG crosses $170.5M in presale success with BDAG250 bonus and Whitepaper V3 launch! Solana grows…

1 hour ago

Qubetics Presale Price Surge Approaches: The Best Coins to Invest in Right Now While Toncoin, and XRP Gain Traction

Discover why Qubetics, Toncoin, and XRP are the best coins to invest in right now.…

2 hours ago

Book of Meme Old News? This Best Meme Coin to Invest in 2024 Is Multiplying Gains Like a Champ

Over the years, meme coins have evolved from inside jokes into serious investment opportunities.

3 hours ago

Time’s Ticking on BlockDAG’s 5-Tier Bonus- Few Days Left to Grab It While Cardano Whales Take Action, Aave Rallies Strong

Discover BlockDAG's five-tier bonus program's closing phases that enhance buyer holdings. Gain insights on the…

3 hours ago

Best Altcoins to Buy for 2025: Qubetics Presale Surge, Solana’s Lightning Speed, and Cardano’s Blockchain Revolution

Discover why Qubetics, Solana, and Cardano are redefining the crypto landscape. Learn about milestones, price…

4 hours ago

Why Qubetics, NEAR Protocol, and IMX Are Dominating Crypto: The Best Altcoins to Join Today for Game-Changing Returns 

Discover why Qubetics, NEAR Protocol, and Immutable X are the best altcoins to join today,…

6 hours ago

This website uses cookies.