- GMX falls below $12 as GLP pool exploit triggers panic selloff.
- Key support levels break, technicals suggest deepening bearish momentum for the token.
- GLP minting suspended after $40M hack, sentiment around this crypto turns negative.
GMX has dipped below the $12 mark, and this has led to the creation of new technical breakdowns in several indicators. According to the TradingView chart, the price is being traded at $11.67, which is 4% below its value 24 hours ago. This fall confirms the presence of a robust bearish trend and erases a lot of the gains experienced at the beginning of the year.
GMX Breaks Below Important Support Areas
GMX is below the major moving averages on the daily chart. The 20 EMA is at $13.65, and the 200 EMA is quite distant at $17.41. The reason behind this is that these moving averages are on downtrends that prove the existence of a long-term bearish momentum. It also moves below the 50 EMA at a price of $14.80.
The Fibonacci retracement levels show further danger on the downside. The support levels are at approximately $10.55 and $7.72 based on recent price movements. The final major level is $4.89, which corresponds to the 3.618 extension. So long as the bear side pressure does not reduce or stop, it is possible that GMX will enter into each of these zones.
Source: TradingView
Also Read | GMX Halts V1 Trading After $42M Crypto Hack Hits Arbitrum Liquidity Pool
The Volume bar is also a confirmation of the selloff. It is now over 2,500, much higher than the previous days. Such a high volume is associated with panic selling and not a normal correction. The VRVP implies that GMX lost its strongest support at the $13.50 level. This loss erases one of the major demand areas and creates a chance for greater losses.
GMX Selloff Rises Sharply After $40 Million Exploit
The Stochastic RSI is flashing oversold. The blue line is at 21.37, and the orange line is at 36.25. It means that the market has suffered exhaustion in the short term. Currently, there’s no display of a bullish crossover, which would have suggested that a recovery is in sight.
MACD remains bearish. The MACD line is below the signal line, and both are below the zero axis. There is no histogram support building yet. This shows continued bearish momentum and lack of positive divergence.
RSI also shows weakness, currently at 34.09. This puts the token in bearish territory but not yet in extreme oversold conditions. RSI suggests selling pressure is dominant, with no reversal signal for now.
This bearish trend from the technicals followed the confirmation of a major attack on the GMX V1 protocol. As the project’s team indicated, it lost $40 million worth of tokens in its GLP pool on Arbitrum. The malicious actors sent the stolen amount to an unknown wallet. Immediately after the attack, GMX limited the trading of V1 on Arbitrum and Avalanche.
GLP Pool Enters Emergency Shutdown After Exploit
The project team also suspended issuance of GLP and redemption to prevent any extra risk. The former is to protect users and keep the protocol safe since an investigation is underway.
The GMX team stated that the issue does not impact GMX V2, usage of GMX token, and other markets. The only attack affected the GLP pool on GMX V1. The hack didn’t affect any other aspect of the protocol at the time of the tweet.
According to the announcement, GMX smart contracts have gone through multiple security audits in the past. Still, the team and external partners are now conducting a deep dive to find out how the exploit happened. They intend to share a full incident report after a complete review.
Until more information is released, sentiment around GMX may remain negative. The price chart already reflects fear and uncertainty. If the team cannot quickly restore trust, price recovery may be delayed.
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