GMX is a DEX that supports spot and perpetual futures on an on-chain interface
The coin came after news of its listing by Binance on Wednesday.
GMX is facing another revamp
GMX is known to be a decentralized exchange that supports spot and perpetual futures through its on-chain trading interface. Avalanche and Arbitrum power the DEX. GMX supports zero price impact trades at very low swap fees.
A key feature of GMX is that it allows users to borrow up to 30x their initial margin. Its native token, GMX, provides utility to the ecosystem and facilitates governance.
The GMX token is up almost 40% before slipping following the latest news. On October 5th, Binance announced the listing of the GMX token. Binance said that it will start trading for GMX pairs alongside BTC, BUSD and USDT. Trading commenced on 2022-10-05 at 10:00 (UTC). The crypto exchange said that GMX withdrawals will begin on 2022-10-06 at 10:00 PM (UTC).
GMX improves after double-digit gain
Source – TradingView
Technically, GMX climbed above the $56 resistance level as social interest in the coin increased on Wednesday. The coin has since fallen back and is trading below the resistance area.
Recent gains forced the coin to break above the upper boundary of the Bollinger Bands. This meant that there was potential for improvement. The token has support at $38, which coincides with the lower boundary of the Bollinger Bands.
Should you buy a GMX?
This analysis suggests that GMX is likely to face a correction after it fails to maintain the $56 resistance level. In our assessment, the token could have been driven by a retail frenzy. The emphasis is on data from LunarCrush, which showed that GMX was second in terms of social interest on Wednesday.
Of course, the listing by a major exchange like Binance is a big boost for GMX. However, as retail interest cools, the price could be impacted.
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