GMX -41.04% in 24 Hours Amid Sharp Downtrend

On AUG 31 2025, GMX dropped by 41.04% within 24 hours to reach $14.59, GMX dropped by 446.19% within 7 days, dropped by 201.88% within 1 month, and dropped by 4645.09% within 1 year.

The token has experienced an aggressive decline across multiple timeframes, with the 24-hour drop being the most pronounced. This sharp correction reflects a broader bearish trend, with no immediate signs of reversal. Technical indicators suggest that the selling pressure has overwhelmed any potential short-term buying interest, pushing the asset into a deeply oversold territory. Analysts project that further price action will depend heavily on liquidity events and on-chain activity rather than fundamental developments.

In recent trading sessions, GMX’s price trajectory has shown minimal resistance levels holding, with each new low reinforcing the downward trajectory. The token has failed to close above any of its major moving averages, including the 50-period and 200-period lines, which is typically a bearish sign. The MACD histogram has been negative for several periods, and the RSI has remained below 30 for the last three days, indicating potential exhaustion among short-sellers but not necessarily a reversal.

Backtest Hypothesis

A proposed backtesting strategy is designed to evaluate the token’s behavior under defined conditions. This strategy aims to simulate trades based on technical signals, such as moving average crossovers and RSI thresholds, to assess whether a systematic approach could have captured gains or mitigated losses during the recent decline. The backtest would evaluate the performance of long and short positions triggered by specific technical indicators and compare the results against a buy-and-hold benchmark.