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

2 years ago

A monolithic downtrend successful the STEPN (GMT) prices witnessed successful the past 30 days appears to beryllium nearing exhaustion.

GMT's price has rebounded by astir 35%—from $0.80 connected May 27 to $0.99 connected May 28. Interestingly, the upside retracement started aft the terms fell successful the aforesaid range, which had acted arsenic enactment earlier GMT's 500% and 120% terms rallies successful March and aboriginal May, respectively.

Additionally, the rebound further preceded an 80% driblet from its grounds precocious of $4.50, established connected April 27, which near GMT oversold, per its regular comparative spot scale speechmaking that slipped beneath the oversold threshold of 30 connected May 26.

The method support, successful summation to oversold RSI, suggests GMT is successful the process of bottoming out.

GMT terms levels to watch

Drawing a Fibonacci retracement graph from GMT's $0.0099-swing debased to $3.82-swing precocious leaves the token wrong a broader consolidation range, defined by the 0.382 Fib enactment (near $1.50) acting arsenic interim absorption and the 0.786 Fib enactment (near $0.82) serving arsenic interim support.

Therefore, an extended rebound determination from the $0.82-support level brings $1.50 into the attraction arsenic the adjacent upside target, up astir 40% from today's price. Moreover, a beardown upside follow-up could nonstop the STEPN token towards the $2-2.50 area, suggesting that the marketplace has bottomed out.

Conversely, a weaker upside follow-up could person GMT's terms retest $0.82 for a breakdown determination toward $0.54. This level was instrumental successful capping the token's downside attempts betwixt March 17 and March 21 earlier this year.

STEPN a "hype-driven speculative frenzy?"

From the cardinal perspective, GMT's bias looks skewed to the downside.

First, the token continues to commercialized successful near-perfect tandem with Bitcoin (BTC) and the different top-cap cryptocurrencies, according to their regular correlation coefficient readings, which topped 0.98 connected May 21, but had subsided to 0.75 connected May 28.

So, if Bitcoin continues to struggle beneath $30,000, arsenic galore analysts believe, it could instrumentality GMT little alongside owed to its accordant affirmative correlation with the token.

Second, GMT could driblet owed to the rising uncertainties surrounding STEPN's concern model, which involves paying users for exercising either by walking, jogging, oregon moving with the autochthonal Green Satoshi Token (GST) units.

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Mike Fay, an autarkic marketplace expert and the writer of the Heretic Speculator fiscal newsletter, says that STEPN's alleged move-to-earn exemplary is neither scalable nor sustainable successful the agelong term.

The expert cited immoderate halfway issues with the "lifestyle app."

First, STEPN has a monolithic introduction obstruction for it makes radical get its costly "Sneaker NFTs." But adjacent then, radical bargain these integer issues for hundreds oregon thousands of dollars successful anticipation that they would retrieve their investments by earning and selling GST tokens.

Many users person already recouped their money, specified arsenic YouTuber Sebbyverse, who claims that helium earned $219 worthy of GST tokens conscionable by walking 15 minutes to-and-fro for dinner.

"The mode this apt ends is with the past radical who travel into the level fundamentally serving arsenic 'exit liquidity' for the aboriginal adopters erstwhile the app's in-game outgo token (GST-USD) collapses," Fay said portion highlighting that the STEPN's in-house token is already crashing.

That would wounded users' instrumentality connected concern who paid thousands of dollars for Sneaker NFTs. So, if the request for NFTs dries up and inducement drops, STEPN would person occupation attracting caller players to its app, frankincense dampening request for GMT, according to Fay. He added:

"STEPN is successful a hype-driven speculative frenzy and I'm not touching immoderate of this. Not the payout token (GST-USD), the governance token GMT, oregon the NFTs."

The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.

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