Is GMX Crypto Price Turning Bullish?

GMX price turned bullish and traded above the key moving averages showcasing bullishness on the daily chart.

A GMX, a decentralized exchange (DEX) that allows users to trade perpetual cryptocurrency futures with up to 50X leverage on popular cryptocurrencies like BTC, ETH, and more. The platform started out in September 2021 as Gambit Exchange. So far, GMX has a total trading volume of over $130 Billion and 283K total users. GMX operates on the Arbitrum and the Avalanche blockchain. These networks are linked to the exchange through Synapse — a cross-chain bridge.

How GMX is Diffrent From Others

Trading on GMX is different from centralized exchanges (CEXs), which use an order book model. Trading on GMX is based on an innovative automated market model (AMM) that is used by DEXs like Uniswap. It has a native multi-asset pool, GLP, which earns revenue for liquidity providers.

GLP is a multi-asset liquidity pool (LP) that consists of ETH, BTC, LINK, UNI, USDC, USDT, DAI and FRAX at the time of writing. Market prices depend on Chainlink’s oracles, which gathers token price data from all the top exchanges.

The decentralized exchange ecosystem has two tokens: GLP and GMX. The first token is for providing liquidity. The GLP price shows the value of all GMX assets, which are traded with leverage and swaps. In other words, GLP is an index of all assets on the exchange. GMX is the utility and governance token.

Users can provide liquidity by creating GLP, and in return, they get 70% of all fees generated on the corresponding blockchain. Unlike some liquidity pools, GLP does not suffer from impermanent loss. Moreover, the GLP pool acts as a counterparty for traders. When GLP token holders provide liquidity for leveraged trading, they benefit when traders lose money, and the opposite is also true.

Current Stats of GMX Crypto and Technical Points

At the time of publication, GMX crypto was trading slightly at $48.789984 with an intraday drawdown of 0.35%, moving below the 200-Day EMA, highlighting bearish sentiments on the charts. In addition, intraday trading volume also is 32.43 billion. GMX crypto’s market capitalization is $461.13 Million. 

GMX crypto showed buyers strength and short-term charts showed bullishness in crypto. Moreover, the price is trading below the major EMA, indicating further strength for the cryptocurrency. The RSI curve is near 60.99, close to an overbought zone, with a negative outlook indicating bullish sentiment in the cryptocurrency. The MACD shows green bars along with a bullish crossover, indicating bullishness. 

Conclusion

GMX is a decentralized exchange that offers leveraged trading on popular cryptocurrencies using an innovative AMM model. The platform has seen impressive growth in terms of trading volume and users since its launch in September 2021. GMX price broke above the key moving averages, signaling a potential uptrend. However, the price is still facing some resistance at the $58.00 level and may experience some volatility in the short term. Investors who are interested in GMX should do their own research and be aware of the risks involved in trading crypto derivatives.

Technical Levels

Support Level: $86.79.

Resistance Level: $100.00.

Disclaimer

This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your own research before making any financial decisions

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.