GMX -458.28% in 24 Hours Amid Sharp Correction in Trading Activity

On SEP 1 2025, GMX dropped by 458.28% within 24 hours to reach $14.58, GMX dropped by 846.46% within 7 days, dropped by 458.28% within 1 month, and dropped by 4869.44% within 1 year. The dramatic price movement has drawn attention from the crypto and DeFi communities, as GMX continues its downward trajectory after a prolonged bearish phase.

The drop is part of a broader selloff in the DeFi space, with GMX experiencing heightened liquidations and reduced liquidity across multiple platforms. Investors and traders are closely monitoring the asset as it reaches multi-year lows. Analysts project that the current price action may signal a continuation of a bearish trend, based on observed price resistance levels and sustained downward momentum.

Technical indicators on the 1-hour and 4-hour charts show a clear bearish bias, with both the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) confirming a lack of bullish momentum. RSI readings are consistently below 30, indicating oversold conditions, while the MACD line has remained below the signal line across all tested timeframes. The 200-period exponential moving average has also not acted as a support level, further reinforcing the bearish outlook.

Backtest Hypothesis

A proposed backtesting strategy is being evaluated to assess the potential effectiveness of a trend-following approach in the context of GMX's current price environment. The strategy is designed to enter long positions when the 50-period EMA crosses above the 200-period EMA and exit when the opposite occurs. Stop-loss and take-profit levels are set at fixed percentages relative to entry price points.

The hypothesis is that this strategy may have been ineffective in recent periods due to the sustained bearish trend, as the 50-period EMA has not crossed above the 200-period EMA in the past several months. Traders using a similar strategy may have incurred losses during the recent correction, as the asset has continued to trend downward despite periods of consolidation.