GMX Market Bullish but Volatile, Potential for Buying Opportunity
Although opening the day under a negative hand sent the price down to an intraday low of $56.28, the GMX (GMX) market has been bullish throughout the previous day. After a brief period of bear dominance, bulls retook control, sending the price of GMX soaring to a day-to-date high of $62.10. At the time of publication, bullish momentum has pushed the price up from its previous close of $56.32 to $60.45.
During the upswing, GMX saw its market cap rise by 7.43% to $516,180,136, reflecting investors’ “buying frenzy” and their optimistic outlook. Nevertheless, 24-hour trading volume plummeted 41.58% to $80,698,815, which might indicate a reduction in trading activity and liquidity in the market.
This action may result in more volatility and price swings for GMX soon making purchasing and selling GMX tokens promptly and reasonably priced more complex, resulting in more significant bid-ask gaps and increased slippage. If the bulls keep going strong, they might push prices over $70 and the 7-day high of $73.15 at the next set of resistance levels.
GMX/USD 1-day price chart (source: CoinMarketCap)
The Bollinger bands trend indicates a narrowing price range, shown by the fact that the upper and lower bands intersect at $65.325469 and $56.585859, respectively signaling a probable breakout soon. This notion is supported by the price action, which has developed a green candlestick and has lately exceeded the signal line.
This advance towards the upper band indicates that the positive momentum is building and that additional price appreciation is possible soon. Traders who want to maximize their profits can “buy at the dips” and use stop-loss orders to safeguard their holdings in the event of a quick reversal and sell during rallies” to protect their profits and prevent prospective losses.
While the Relative Strength Index (RSI) is moving north with a value of 49.30, traders may interpret this as a signal to hold holdings until the RSI hits higher before selling. If the bullish strength remains and the RSI hits “70,” traders may consider this a probable overbought condition and opt to sell to lock in gains or wait for a potential reversal before buying again.”
GMX/USD chart (source: TradingView)
Although positive, the higher stochastic RSI movement with a value of 90.41 shows that the GMX market may be overbought and ready for a possible correction soon. To safeguard their gains, traders should regularly watch price activity and consider taking profits or executing stop-loss orders.
The movement of the Chaikin Money Flow into negative territory, with a value of -0.05, supports the stochastic RSI trend. This idea is because a negatively moving CMF indicates selling pressure in the market, which corresponds to the oversold state shown by the stochastic RSI trend.
This combination may indicate a potential buying opportunity for traders looking to enter the market. The oversold condition and selling pressure may have pushed the price lower than its actual value. This move presents an opportunity for traders to buy at a discount and potentially profit from an eventual price rebound.
GMX/USD chart (Source: TradingView)
GMX market remains bullish, but traders should stay vigilant for potential corrections and take advantage of potential buying opportunities.
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