The exact meaning of recede depends upon its context. For example:
"We can't move back in until the floodwaters recede." — diminish and move away
"Her fear receded." — diminished
"The waves first advance and then recede." — move away
"The news story receded into the background as it was replaced by new stories." — received diminished attention
"a receding hairline" — diminished hair (each year the line where hair stops growing is higher)
Gatsby believed in the green light, the orgastic future that year by year recedes before us. It eluded us then, but that's no matter — tomorrow we will run faster, stretch out our arms farther... and one fine morning — So we beat on, boats against the current, borne back ceaselessly into the past.
recedes = moves away; or retreats from
There are no more uses of "recede" in The Great Gatsby.