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GMX, the governance and utility token that powers GMX, an Arbitrum-based decentralized exchange (DEX) for trading perpetual cryptocurrency futures with leverage, has tanked around 6.5% in the last 24 hours, as per CoinGecko.
That makes gives it the unwelcome crown of being the worst-performing cryptocurrency in the top 100 by market capitalization over this time period.
GMX/USD fell to just above $50 per token on Friday, dropping below its 50-Day Moving Average (DMA) just above $53 in the process, having lost its grip on its 21DMA near $56 earlier in the week.
The latest decline has seen GMX fall its lowest levels in over a month, with the cryptocurrency now 18% lower versus its highs from earlier in the month around $62.
There doesn’t seem to be any particular new catalyst of note behind the GMX price decline in recent days.
But a quick look on DeFi Llama shows that the protocol’s trade value locked (TVL) in its smart contracts has been falling in recent months.
The protocol’s ETH-denominated TVL was last just under 500,000 ETH, down from over 700,000 in February.
Its USD-denominated TVL, meanwhile, was last just under $1 billion, down from over $1.26 billion earlier in the year.
The falling ETH-denominated TVL suggests that the protocol is struggling to keep hold of crypto capital, which isn’t a good sign, perhaps explaining recent GMX token underperformance.
Price Prediction – Where Next for GMX (GMX)?
After the rejection of the 100 and 200DMAs when GMX peaked above $60 earlier this month sent a strong bearish signal, GMX’s latest decline below the 50DMA (meaning it is below all its major moving average) confirms that the bears are back in full control.
In the absence of any key levels of support aside from the late-June lows just above $50, a fall back to June lows in the $41s is looking highly likely.
That could mean downside in the region of 20% from current levels.
One saving grace for the GMX protocol might be the high yields currently on offer for liquidity providers who mint the protocol’s liquidity-providing token GLP.
As per a recent tweet from GMX, this APY was last 12.5% on Arbitrum.
That’s a lot more than crypto investors can get in most other corners of the Decentralized Finance (DeFi) market, such as via staking ETH via a liquid staking protocol (yields are around 4%).
Crypto capital outflows could quickly switch back to inflows for GMX as DeFi investors hunt for higher yields.
Of course, GLP carries significant risk – its price is negatively related to the net profits of leveraged traders on the GMX platform, meaning if they start netting big wins, GLP investors could lose out.
Meme Coin Alternative to Consider
While the outlook for GMX (GMX) is downbeat, traders should always look to diversify their token holdings.
Blue chip names like bitcoin (BTC) and ether (ETH) are always a good bet.
But for crypto investors with a higher tolerance for risk and a higher desire for near-term profits, meme coins might be the way to go.
The best way to profit big in the meme coin market is to identify a meme coin with a relatively unknown token that still has a very low market cap, but that has a good chance of exploding to the upside.
Luckily for high-risk tolerance meme coin investors, analysts at Cryptonews.com have identified the perfect such project.
Burn Kenny Coin is a brand-new South Park-themed meme coin that launched its presale on Thursday.
Despite only launching a day ago, the new project has already been able to sell a whopping $440,000 worth of $KENNY tokens.
Given that the project is only selling $500,000 worth of the token, meme coin degens need to move quickly if they don’t want to miss out.
$KENNY has a very strong likelihood of seeing explosive upside when it launches on decentralized exchanges (DEXs), which will happen most likely early next week.
That’s because:
The token’s limited presale availability means pent-up demand and FOMO are likely to carry across to the DEX launch.The presale values the token at a tiny $875,000 market cap (when you take into account the 30% token burn), leaving plenty of room for explosive upside.30% of the token supply has already been committed to a three-month DEX liquidity lock to ensure smooth trading conditions, as can be verified on Team Finance.The marketing team behind Burn Kenny Coin also masterminded the SpongeBob (SPONGE), Thug Life (THUG) and Mr Hankey (HANKEY) tokens, all of which saw 3x-100x pumps. Their efforts are already paying dividends, with $KENNY featuring prominently across the crypto press.
Get Hold of $KENNY Before the Presale Ends
With the project having now raised nearly $450,000, Burn Kenny Coin’s presale could sell out within a matter of hours.
Head over to the Burn Kenny website now, where you can click through to become a follower of the Twitter account and join the Telegram channel, so you will be first to know when the presale ends and about the imminent DEX launch.
To buy $KENNY in presale, you will need Ethereum.
Connect your wallet at the Burn Kenny Coin website set how much you wish to buy, approve the connection and purchase, and you are done.
Return to the site and claim your tokens after the presale has concluded.
Buy $KENNY on the sly before the rest of the world wakes up, and you could bag the easiest 5x, or more, opportunity in crypto.
Buy Kenny Coin Here
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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