A prominent crypto trader, Altcoin Sherpa, has issued a warning about an impending decline for one decentralized exchange altcoin (DEX). According to Altcoin Sherpa, the decentralized perpetual trading platform GMX is likely to experience a significant downward movement of approximately 20%. This prediction comes after GMX showcased a strong performance earlier this year, with a notable rally of over 143% from its low of $37.50 to a high of $91.40.
At the time of writing, GMX is currently being traded at $50.68, indicating a potential retracement from its recent highs. Altcoin Sherpa, who boasts a substantial following of 196,200 Twitter followers, has notified the crypto community about this potential downside move.
In addition to his analysis on GMX, Altcoin Sherpa also provided insights into the current outlook for Bitcoin and four other cryptocurrencies. Although Bitcoin is currently trading above support at around $29,500, the trader notes that sentiment among traders appears to be bearish towards the leading cryptocurrency. Despite this sentiment, Bitcoin has witnessed a slight increase of 0.4% over the past 24 hours, with its current trading price resting at $29,929.
Altcoin Sherpa suggests that altcoins are likely to undergo a temporary setback once they reach the 0.786 Fibonacci level. This indicates that the overall performance of altcoins will be largely influenced by Bitcoin’s behavior in the market.
Altcoin Sherpa’s warning regarding GMX’s potential decline serves as a reminder that even strong-performing altcoins may experience setbacks. The ever-volatile nature of the cryptocurrency market makes it crucial for investors and traders to remain vigilant and informed about the potential risks associated with their investments. As always, conducting thorough research and staying abreast of market trends and expert opinions is crucial for making informed decisions in this rapidly-evolving industry.