GMX token more than doubles in price
DEX sees increased activity in November
GMX broke out of consolidation and is a buy on a retracement
gmx token (GMX/USD) has doubled in price. Trading at just $25 on November 10, the cryptocurrency touched a high of $59 on December 2. The gains came amid an influx of investors following the collapse of FTX. As of press time, GMX was trading at $56.
FTX Exchange Collapse Fueling demand for decentralized exchanges, or DEXs. DEXs that became popular were GMX and Uniswap. Both platforms saw an increase in investor interest, fueling gains in the native token. Nevertheless, on November 28, GMX saw $1.15 million in daily trading fees. Surpassed the fees earned by Uniswap for the first time in history. This underscored that investors view the lesser-known DEX as a serious competitor to Uniswap.
Market analyst Zane commented on GMX’s recent performance compared to Uniswap. The market analyst says GMX’s performance stems from investors receiving favorable trading fees of around 30%. Uniswap users do not receive shares from the protocol’s trading fees. Zane says GMX is a buy and hold in a bear market. He also lauds the platform as the second most consistent platform after Uniswap.
GMX technical outlook as prices aim for the stars
Technically, GMX broke above the $49 resistance. The cryptocurrency is also trading in an ascending channel, which has now been invalidated as the price broke above the upper band.
An RSI reading of 70 indicates that GMX is entering overbought levels. The cryptocurrency is also facing minor resistance and a correction could happen before the next bull leg.
When to Buy GMX?
Breakout on key resistance and strong fundamentals supports buying GMX. However, from the price action and indicators, GMX could be due for a correction.
A possible price retracement towards $49 is on the horizon. Investors should take advantage of the correction and buy short.