A closely followed crypto strategist believes that a decentralized exchange (DEX) altcoin is flashing signs that it could be about to take off on a bullish rally.
The trader Ali Martinez tells his 40,400 followers on the social media platform X that GMX looks primed to break out from an inverse head-and-shoulders pattern, a technical analysis chart formation that could signal a trend reversal.
“If we see a consistent three-day candlestick close above $59, this could be the trigger for a bullish rally that propels GMX toward an ambitious target of $90!”
GMX is a decentralized spot and perpetual exchange that offers up to 50x leverage. The project’s native asset is trading at $54.50 at time of writing and is down more than 2% in the past 24 hours.
Martinez isn’t the first digital asset analyst to point out GMX’s potentially bullish pattern. Earlier this month, the pseudonymous trader known as The Crypto Dog predicted that the token could witness a nearly 90% rally if it took out its immediate resistance level.
“GMX painting a massive multi-month inverse head and shoulders… Measure rule gives a target of $106 for GMX.”
Looking at Bitcoin (BTC), the trader warns that the leading digital asset by market cap is giving off a reading that a trend reversal for the broader crypto markets is on the horizon.
The Inter-exchange Flow Pulse (IFP), which tracks BTC flows between various trading platforms, has just fallen below its 90-day average. Historically, this shift often signals a bearish turn in the crypto market!
At time of writing, Bitcoin is worth $42,589, down over 7% in the last 24 hours.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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