The recent price studies of GMX have shown that the current bearish trend and the decline in the GMBX price is not an indicator of volatility.

The current price decline is constant and will likely stay longer than expected. Bulls must hold the $55.44 level to halt the bearish trend.

As the prices of GMX decline, it is a clear indication that bulls are being dominated by the bears. Bears have successfully dragged the price down to the $50.70 mark. This accounts for the 8.17$ plunge in the price of GMX from its peak.

What is GMX?

GMX is a decentralized derivatives exchange. GMX is famous as it allows users to trade while charging minimal service fees and the lowest transaction fees.

GMX uses its native GLP multi-asset trading platform. It allows users to invest GMX or GLP and earn a specific portion of interest on other native crypto coins.

GMX’s liquidity pool supports multiple cryptocurrencies with varying ratios of profitability. As of now GMX’s GLP liquidity pool that is being operative on Arbitrum supports a total of eight cryptocurrencies such as ETH, BTC, LINK, UNI, USDC, DAI, and FRAX.

Half of these are stablecoins whose market price is backed by the USD. That means the price stability of half of these currencies depends on the money market performance of the USD.

The current share of Stablecoins in the current liquidity pool of GMX is around 50%.

The Price Analysis of GMX

GMX is the governance token being made by the GMX exchange.  The price of GMX declined on Tuesday, 6 December.

Reaching the new height of $55.44, on Monday, GMX’s bullish run was short-lived as its price declined.

Bears were successful in bringing the price down, as the market today was back in the red zone there was increased selling pressure on the investors amid the rumor that GMX’s price may go further down in the next 24 hours.

This strong selling pressure knocks the bulls out of their stronghold. According to Coin Edition’s analysis, more investors are likely to sell their GMX shares in the market surrendering to the strong bearish trend.

A detailed look at GMX’s market performance shows that at this very moment the market cap of GMX diminished by 6.73% to $408,190,961.

Apart from that, the trade volume of the past 24 hours has risen by 6.14% which currently stands at around $17,276,242.

The reason that bears has recaptured the market is the data released by FED showing that a rise in inflation is expected. This rise will cause trouble for investors in the fiat market.

Following this rumor, the crypto traders started to sell their assets in order to be safe against any greater price plunge.  This bearish pressure on GMX is likely to be consistent for days to come.

Analysts do believe that this is the right time to go short on GMX and rather than holding the governance token, it is time to sell off in order to be protected against any other price decline.

GMX is not the only token that lost its price on Tuesday, a large number of cryptocurrencies including ETH, DOGE, and Polkadot also struggled to retain their bullish run.

As the price of GMX is on the decline, strong support for a bearish trend can clearly be seen. That means that in the future this bearish trend will become further intense.

GMX’s RSI Movement

GMX’s Relative Strength Index (RSI) seems to be moved into the oversold region. This is really an encouraging sign for investors. But only for those investors who are aiming at a long-term gain.

Despite the fact that GMX will experience further bearish trends that will further halt its prices. But RSI already in the oversold region means that selling pressure has already peaked.

The upcoming bearish trend will be for short time. Soon GMX will get rid of the bearish run and will be back on its way to the price recovery.