Famous crypto analyst and trader, Altcoin Sherpa, has issued a warning that the GMX token, which is associated with the decentralized cryptocurrency exchange GMX, could experience a sharp decline after its strong performance at the beginning of the year. The analyst also shared updated expectations for Bitcoin (BTC) and four altcoins that they closely follow.
Decentralized Exchange Expects GMX Token to Collapse
Altcoin Sherpa has warned that the GMX token of the decentralized cryptocurrency exchange could potentially experience a 20% decline. GMX had previously seen a significant increase of over 143%, reaching a high of $91.40 from $37.50, but it is currently trading at $50.68.
The analyst expects GMX to underperform the rest of the market in the medium term, hitting a bottom around $40 and then entering a consolidation phase with sideways movement for a while.
Altcoin Sherpa is also closely monitoring four other altcoins, including Sui (SUI), Hooked Protocol (HOOK), Open Campus (EDU), and Arkham (ARKM). The market expert has warned that all of these altcoins are expected to return to the 0.786 level of the Fibonacci Correction Levels, indicating a potential downturn.
According to the analyst, once the altcoins reach the 0.786 Fibonacci level, they are anticipated to rebound. Altcoin Sherpa particularly draws attention to Binance launchpad projects HOOK and SUI, expecting these altcoins to have very positive reactions from the 0.786 Fibonacci level.
Critical Support Level for Bitcoin: $29,500
After analyzing GMX, Altcoin Sherpa also addressed Bitcoin, stating that despite the expectation of a significant decline, the fact that the largest cryptocurrency is hovering around $29,500 suggests the possibility of a bounce rather than a downturn. The analyst does not anticipate a drop as long as the price remains above the $29,500 support level.
Furthermore, Altcoin Sherpa emphasized that Bitcoin’s performance will have a significant impact on the overall performance of altcoins, highlighting that $29,500 is an important support level that should be maintained for altcoins as well.
