Crypto analyst Altcoin Sherpa, who became famous for his predictions during the FTX collapse, issued a collapse warning for a popular DEX token.
Altcoin Sherpa expects 20% drop in GMX price
The popular analyst said that the DEX token, GMX, is poised for a bearish move after its strong performance earlier this year. Altcoin Sherpa, which has 196,200 followers on Twitter, predicts that GMX will likely experience a 20% drop. According to their technical analysis:
GMX: I think it looks like it will go back to $40 this time around. It was a cryptocurrency favorite a few months ago, but was waiting for it to cool down and enter accumulation mode after a bottom. I expect this to underperform the rest of the market in the medium term.
$GMX: I think this one looks like it's going to go back to the $40s. It was the darling of crypto a few months ago but expecting it to cool and go into accumulation mode after a bottom. Expecting this to underperform the rest of the market for the mid term. pic.twitter.com/V9N7QhNtcy
— Altcoin Sherpa (@AltcoinSherpa) July 20, 2023
GMX is currently trading slightly above $40, which the analyst was expecting to drop. In the last 24 hours, it has lost 3% of its value and regressed to $ 50.
These altcoins, backed by analyst Binance, also see opportunity
Sherpa also closely monitors Sui (SUI), Hooked Protocol (HOOK), Open Campus (EDU) and Arkham (ARKM) graphics. cryptocoin.com As we have reported, the projects gained some momentum with the support of Binance. According to the analyst, altcoins will likely rise again after reaching the 0.786 Fibonacci level:
Check out some of the Binance launchpad projects and 0.786 Fib (Fibonacci) and reactions… For those who don’t understand what I’m talking about: 0.786 Fib showed reasonable responses for both HOOK and SUI. I’m sure there are others like these coins – expect slow downward price action followed by a nice response.
The analyst also states that “BTC will be the biggest factor” for the overall performance of altcoins. He says the drop for BTC is still on the table.
Most of its investors are wary of BTC
Looking at the BTC chart, Sherpa says that although the leading crypto is still trading above the support of around $29,500, investors are showing a bearish bias.
$BTC -The whole timeline is bearish as fuck but this is still the range low and support is still support (until its not)#Bitcoin pic.twitter.com/C4LkKQmKVR
— Altcoin Sherpa (@AltcoinSherpa) July 21, 2023
Meanwhile, an analyst from CryptoQuant pointed out an intriguing whale behavior that could have market implications in the coming days. The analyst is tracking the 72 hour Swap Whale Rate for BTC. This metric has risen steadily over the past week. This was something he called a “clear sign” of selling pressure.
What’s next for Bitcoin?
The Exchange-Whale Ratio is basically the relative size of the top 10 listings relative to the total listings on an exchange. When whales start transferring large amounts of coins to exchanges, this puts an oversupply of the market. Thus, a sell signal usually emerges. Stock Whale Ratio remains below 85% in a bullish market. Currently, this indicator is hovering above 85% when bears are dominant.
In the example mentioned, the rate has been moving between 85%-90% for almost a week. This suggests that price drops may be just around the corner. While the selling pressure is high, the analyst said that if sellers quickly run out, it could pave the way for a new wave of demand. He also stated that it could lead to higher prices for BTC.
