STEPN rebounds sharply after falling 80% in a month — is GMT price bottoming out?

A large downtrend within the STEPN (GMT) costs witnessed within the final 30 days seems to be nearing exhaustion.

GMT’s worth has rebounded by practically 35%—from $0.80 on Might 27 to $0.99 on Might 28. Curiously, the upside retracement began after the worth fell in the identical vary, which had acted as help earlier than GMT’s 500% and 120% worth rallies in March and early Might, respectively.

GMT/USD each day worth chart. Supply: TradingView

Moreover, the rebound additional preceded an 80% drop from its file excessive of $4.50, established on April 27, which left GMT oversold, per its each day relative power index studying that slipped beneath the oversold threshold of 30 on Might 26.

The technical help, along with oversold RSI, suggests GMT is within the means of bottoming out.

GMT worth ranges to observe

Drawing a Fibonacci retracement graph from GMT’s $0.0099-swing low to $3.82-swing excessive leaves the token inside a broader consolidation vary, outlined by the 0.382 Fib line (close to $1.50) appearing as interim resistance and the 0.786 Fib line (close to $0.82) serving as interim help.

GMT/USD each day worth chart that includes Fib help/resistance ranges. Supply: TradingView

Due to this fact, an prolonged rebound transfer from the $0.82-support stage brings $1.50 into the eye as the following upside goal, up about 40% from at the moment’s worth. Furthermore, a robust upside follow-up might ship the STEPN token in direction of the $2-2.50 space, suggesting that the market has bottomed out.

Conversely, a weaker upside follow-up might have GMT’s worth retest $0.82 for a breakdown transfer towards $0.54. This stage was instrumental in capping the token’s draw back makes an attempt between March 17 and March 21 earlier this 12 months.

STEPN a “hype-driven speculative frenzy?”

From the basic perspective, GMT’s bias seems to be skewed to the draw back.

First, the token continues to commerce in near-perfect tandem with Bitcoin (BTC) and the opposite top-cap cryptocurrencies, in line with their each day correlation coefficient readings, which topped 0.98 on Might 21, however had subsided to 0.75 on Might 28.

GMT/USD and BTC/USD each day correlation coefficient. Supply: TradingView

So, if Bitcoin continues to wrestle beneath $30,000, as many analysts imagine, it might take GMT decrease alongside on account of its constant constructive correlation with the token.

Second, GMT might drop as a result of rising uncertainties surrounding STEPN’s enterprise mannequin, which entails paying customers for exercising both by strolling, jogging, or working with the native Inexperienced Satoshi Token (GST) items.

Mike Fay, an unbiased market analyst and the writer of the Heretic Speculator monetary publication, says that STEPN’s so-called move-to-earn mannequin is neither scalable nor sustainable in the long run.

The analyst cited some core points with the “way of life app.”

First, STEPN has an enormous entry barrier for it makes individuals purchase its costly “Sneaker NFTs.” However even then, individuals purchase these digital points for a whole lot or 1000’s of {dollars} in anticipation that they’d get better their investments by incomes and promoting GST tokens.

Many customers have already recouped their cash, resembling YouTuber Sebbyverse, who claims that he earned $219 price of GST tokens simply by strolling quarter-hour to-and-fro for dinner. 

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“The best way this probably ends is with the final individuals who come into the platform primarily serving as ‘exit liquidity’ for the early adopters when the app’s in-game cost token (GST-USD) collapses,” Fay stated whereas highlighting that the STEPN’s in-house token is already crashing. 

GST/USD each day worth chart. Supply: TradingView

That will damage customers’ return on funding who paid 1000’s of {dollars} for Sneaker NFTs. So, if the demand for NFTs dries up and incentive drops, STEPN would have hassle attracting new gamers to its app, thus dampening demand for GMT, in line with Fay. He added:

“STEPN is in a hype-driven speculative frenzy and I am not touching any of this. Not the payout token (GST-USD), the governance token GMT, or the NFTs.”

The views and opinions expressed listed here are solely these of the writer and don’t essentially mirror the views of Each funding and buying and selling transfer entails threat, it’s best to conduct your individual analysis when making a choice.