- Thanks to the price uptick, bullish sentiment around GMX was dominant.
- A few market indicators turned bearish, suggesting a price correction.
GMX investors began 2024 on a good note, as the token’s price has rallied substantially in the recent past. While the token’s price gained bullish momentum, an interesting pattern formed on its chart, which suggested a further hike in its price in the days to come.
GMX investors are enjoying profits
The token’s price gained bullish momentum as we entered 2024.
According to CoinMarketCap’s data, GMX was up by more than 35% in the last seven days. In fact, in the last 24 hours alone, the token’s price surged by more than 7%.
At the time of writing, GMX was trading at $63.18 with a market capitalization of over $589 million.
Since the token’s price increased substantially, AMBCrypto took a look at its social metrics. Our analysis of Santiment’s data revealed that its social volume remained high last week.
Additionally, bullish sentiment around GMX was dominant in the market, as evident from its high weighted sentiment.
Source: Santiment
While that happened, a bullish pattern formed on the token’s chart. Ali, a popular crypto analyst, recently revealed in a tweet that a bullish head and shoulder pattern formed on GMX’s chart.
If the token manages to hold this pattern, then its price might rise further and even touch $80 in the coming days.
$GMX seems to be emerging from a head-and-shoulders pattern, signaling a potential 50% upward move.
If this pattern holds true, we could see #GMX making strides towards $84. pic.twitter.com/AR4ITnc2ss
— Ali (@ali_charts) January 2, 2024
Will GMX touch $80 in January 2024?
To better understand the possibility of the token touching $80, AMBCrypto took a closer look at the token’s on-chain data.
We found that its MVRV Ratio surged considerably over the last week, which can help lift its price further. Whale activity around the token also remained high.
However, GMX’s network growth sank, meaning that fewer new addresses were created to transfer the token.
Source: Santiment
Nonetheless, if GMX manages to maintain its uptrend, it might face resistance near the $64 mark. This seemed to be the case, as previously, when the token’s price reached that level, its liquidation increased, causing a slight price correction last week.
Source: Hyblock Capital
But the possibility of a price correction before GMX touches $80 was high, as several market indicators looked bearish.
Realistic or not, here’s GMX market cap in BTC‘s terms
For instance, the Relative Strength Index (RSI) was about to enter the overbought zone. This can increase selling pressure on the token and push its price down.
On top of that, Chaikin Money Flow (CMF) registered a downtick, further increasing the chances of a price correction.
Source: TradingView