GMX -101.76% in 24 Hours Amid Sharp Correction

On SEP 3 2025, GMX dropped by 101.76% within 24 hours to reach $14.59, GMX dropped by 61.31% within 7 days, dropped by 20.52% within 1 month, and dropped by 4634.06% within 1 year.

GMX has experienced a dramatic selloff in the immediate 24-hour period, with the asset falling over 100% in value. The rapid drop has sparked renewed scrutiny of the underlying mechanics and exposure levels of the token. Market participants are now assessing whether this correction reflects a broader structural issue or a temporary liquidity event. No new product launches, governance updates, or on-chain events were reported in the previous 48 hours, making the sharp drop all the more puzzling in the absence of an immediate catalyst.

The recent 7-day decline of 61.31% places the token in a steep bearish trend. Over the past month, GMX has lost 20.52%, and over the past year, its price has fallen by a staggering 4634.06%, indicating a long-term bear market environment. Despite the sharp movements, no new regulatory actions, governance proposals, or ecosystem developments were cited in the news as contributing factors.

Analysts project that the immediate price action may be driven by a combination of liquidation events and concentrated exposure in DeFi lending pools. No official statements from the GMX development team have been made to date. The market is currently awaiting further clarity on the cause of the 24-hour drop.

Backtest Hypothesis

Given the pronounced price movement and the extended bearish trend, several technical indicators have come under scrutiny. The recent decline aligns with bearish patterns typically associated with a breakdown of key support levels and an accelerated rate of volume decay. In this context, a backtesting strategy has been proposed to evaluate the potential performance of a trend-following approach based on these conditions. The strategy would trigger a sell signal when a 50-period moving average crosses below a 200-period moving average, reinforcing the bearish momentum. Conversely, a buy signal is generated upon a retest of key support levels with confirmation from the RSI and MACD indicators. The goal of the backtest is to determine whether a mechanical trading strategy could have mitigated some of the recent losses or capitalized on the long-term downtrend.