- GMX has witnessed over 35% growth in the past week, with a bullish head-and-shoulders pattern suggesting a potential rise to $80.
- Despite bullish trends, indicators like the RSI and CMF hint at a possible price correction in the near future.
Riding the Bullish Wave in 2024
As we usher in 2024, GMX token investors are basking in the glow of recent gains. The token has not only gained momentum but also displayed a promising pattern on its price chart, pointing towards further price increases.
GMX’s Impressive Market Performance
GMX’s price has shown a bullish momentum since the start of 2024. Data from CoinMarketCap reveals a significant 35% increase in the token’s value over the last seven days, with a notable 7% surge in just the past 24 hours. Currently, GMX trades at $63.18, boasting a market capitalization of over $589 million.
Social Metrics and Market Sentiments
Analysis of Santiment’s data indicates that the social volume surrounding GMX remains high. The market is predominantly bullish on GMX, as shown by its elevated weighted sentiment. This dominant bullish sentiment, along with the formation of a bullish head-and-shoulders pattern as highlighted by crypto analyst Ali, suggests a potential upward trajectory for GMX, possibly reaching the $80 mark.
$GMX seems to be emerging from a head-and-shoulders pattern, signaling a potential 50% upward move.
— Ali (@ali_charts) January 2, 2024
On-Chain Data Insights
Examining GMX’s on-chain data, the MVRV Ratio has seen a considerable surge, which could further propel its price. Additionally, whale activity around the token has been robust. However, a decline in network growth, indicated by a reduction in new addresses for token transfers, presents a contrasting perspective.
Potential Resistance and Price Correction
As GMX approaches the $64 resistance level, previous patterns suggest potential liquidation and slight price corrections. This was evident last week when GMX reached similar levels. Despite the bullish trends, a price correction seems plausible, as indicated by bearish market indicators.
Indicators Suggest Caution
The Relative Strength Index (RSI) is nearing the overbought zone, which could increase selling pressure and lead to a price decline. Furthermore, the Chaikin Money Flow (CMF) is experiencing a downturn, reinforcing the likelihood of an impending price correction.
A Balancing Act Between Bullish Trends and Correction Risks
In conclusion, while GMX shows strong bullish tendencies with a possible ascent to $80, investors should remain cautious. The interplay of bullish patterns and bearish indicators suggests a delicate balance, where the potential for significant growth is coupled with the risk of a market correction. As such, the trajectory of GMX in the near term remains a watchful blend of optimism and vigilance.