What is the GMX token, and why is it surging today?
GMX is a DEX that supports spot and perpetual futures on an on-chain interface
The token gained after news that it was getting listed by Binance on Wednesday.
GMX faces a further correction
GMX dubs as a decentralised exchange that supports spot and perpetual futures via 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 30 times their initial margins. Its native token, GMX, provides utility to the ecosystem and facilitates governance.
GMX token rose nearly 40% before sliding following the latest news. On October 5, Binance announced the listing of the GMX token. Binance said it would open trading for GMX pairs with BTC, BUSD, and USDT. The trading started on 2022-10-05 at 10:00 (UTC). The crypto exchange stated that GMX withdrawals would start on 2022-10-06 at 10:00 (UTC).
GMX corrects after double-digit gains
Source – TradingView
Technically, GMX rose past $56 resistance as social interest in the token grew on Wednesday. The token has since fallen back and trades below the resistance zone.
The recent gains forced the token to break above the upper limit of the Bollinger bands. That implied that a correction was likely to happen. The token’s support is at $38, coinciding with the lower limit of the Bollinger bands.
Should you buy GMX
This analysis finds that GMX could continue to face correction after failing to maintain above $56 resistance. In our assessment, the token could have been driven by a retail frenzy. That is emphasised by data by LunarCrush, which shows that GMX was second in terms of social interest on Wednesday.
Of course, listing by a major exchange like Binance is a major boost for GMX. However, as retail interest cools, the price could take a hit.
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