A widely-followed crypto trader believes that one decentralized exchange altcoin (DEX) is poised for a downward move after its strong performance earlier this year.
Pseudonymous Trader Altcoin Sherpa tells are 196,200 Twitter followers that the decentralized perpetual trading platform GMX (GMX) is likely to witness a downward movement of about 20%.
GMX got off to a strong start to the year, rising more than 143% from a low of $37.50 to a high of $91.40.
Say Altcoin Sherpa,
“GMX: I think this one looks like it’s going back to $40. It was crypto’s darling a few months ago, but expected it to cool down and go into accumulation mode after a bottom. We expect this to underperform the rest of the market in the medium term.”
At the time of writing, GMX is trading at $50.68.
Looking at Bitcoin (BTC), the crypto trader says traders appear to be bearish on the crypto king, even though it is still trading above support around $29,500.
“BTC: The whole timeline is bearish…but this is still the low range and support is still support (until it isn’t).”
Bitcoin is trading at $29,929 at the time of writing, up 0.4% over the past 24 hours.
Sherpa too say he is watching other altcoins for a retracement to their respective Fibonacci 0.786 price levels, including Sui (SUI), linked protocol (HOOK), Open Campus (EDU) and Arkham (ARKM).
According to the trader, the altcoins are likely bounce back up once they hit the 0.786 Fibonacci level.
“Looking at some of these Binance launchpad projects and the 0.786 Fib (Fibonacci) and the responses…hmm…
For those who don’t understand what I’m talking about… the 0.786 Fib has proven to have decent responses for both HOOK and SUI. I’m sure there are others like these coins – look for slow price action down followed by a nice reaction.
He too notes that “BTC will be the biggest factor” for altcoins overall performance.
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Image generated: Midway through the journey