GMX Rallies 60% After Binance Listing – Crash Ahead?

YEREVAN (CoinChapter.com) – GMX, the native token of the same-named decentralized perpetual exchange, jumped nearly 60% on Oct 5 after Binance announced its decision to list the token. As a result, the GMX price stood at $52.8 in the European session. However, the bulls might not have time to celebrate, as the digital asset might stall and decline soon enough.

GMX Binance Listing

Binance announced it would open trading for its BTC, BUSD, and USDT trading pairs at 10:00 UTC on Oct 5. Additionally, the world’s largest exchange will “celebrate” the new listing by launching a GMX token airdrop. Binance will distribute $1 million in USDT among 10,000 participants.

Also, the GMX Binance listing announcement provided a ‘task guide’ for potential participants: 1. Follow the GMX official Twitter handle, 2. Retweet and like, 3. Tag three friends, and provide a valid USDT (ERC-20) address in the comments. The airdrop will end on Oct 10.

Popularity Brings Funds

The announcement apparently spurred a retail euphoria, as the GMX also saw heightened social interest. Data from LunarCrush highlighted that in the current top 10 coins, GMX took the second spot right after Dogecoin.

The hype also positively affected the platform’s total value locked (TVL), pumping it 38% in 24 hours. As a result, the TVL stood at $454 million on Wednesday.

Also read: Danish Orsted turns to fossil fuels amid energy crisis – will Europe follow?

GMX Price Pump To Reverse?

Meanwhile, GMX technicals continued to point in the bearish direction. In detail, the token formed a neutral setup, dubbed ‘ascending channel.’ It implies two parallel trendlines that take the digital asset incrementally higher.

The formation is neutral, as it does not predict a bias after GMX leaves through either trendline. However, it can be useful in determining short-term fluctuations. The token ascended to the channel’s resistance but recoiled from it. As a result, it could hit the support next, which pins the target price at approximately $40 in the upcoming sessions, reversing the GMX price pump.