2 years ago
STEPN (GMT) has rallied powerfully against the U.S. dollar this week arsenic it looks apt to signifier a classical bullish method signifier called the "bull flag."
GMT eyes much upside
GMT's terms roseate 30% week-to-date, including a beardown rally to found an all-time precocious adjacent $3.85 followed by a comparatively humble correction to astir $3. In particular, the correction signifier occurred wrong a descending parallel channel, raising possibilities that the terms would yet interruption retired of it to the upside.
That is precisely due to the fact that accepted analysts see beardown run-ups, followed by range-trapped terms corrections, arsenic bullish continuation setups. And the 1 GMT has been coating — a bull flag, arsenic mentioned supra — could pb to an upside roar successful the weeks ahead, arsenic shown successful the illustration below.
GMT/USD 4-hour terms illustration featuring 'bull flag' setup. Source: TradingViewAs a wide rule, traders recognize a bull emblem people by measuring the erstwhile uptrend's tallness and projecting it from the breakout point. Applying the classical setup connected GMT's illustration shows that it present eyes a run-up supra $5, astir 65% supra today's price.
Bull flags' occurrence complaint of gathering their upside targets sits adjacent 64%, according to Thomas Bulkowski, a seasoned capitalist and analyst.
But the hazard of a driblet toward $2 becomes precocious if the GMT's terms breaks beneath the bull flag's little trendline, the past enactment of support, which coincides with the 50-4H exponential moving mean (50-4H EMA; the reddish wave) astatine $2.91.
STEPN's 38,000% gains 'an implicit joke'?
GMT surged by astir 38,000% successful little than 2 months, amid the hype surrounding STEPN's "move-to-earn" economical exemplary that rewards its app's users with a autochthonal currency, called Green Satoshi Token (GST), for simply moving.
STEPN generates revenues (it made $26.81 cardinal successful Q1/2022) via the income of its alleged "NFT Sneaker" — a unsocial integer representation whose ownership enables players to gain GST successful the archetypal place. The crippled uses the proceeds archetypal to bargain and past pain GMT, frankincense creating upward unit connected its prices if the request for the token goes up.
Independent marketplace expert Wangarian believes the hype astir STEPN looks akin to what Axie Infinity (AXS), a play-to-earn gaming metaverse, witnessed successful May 2021. AXS/USD rallied from astir $2.50 to astir $178 betwixt May and November past year.
Tell maine however $APE + $GMT ripping successful a sideways marketplace doesn't look akin to $AXS backmost successful May 2021.
— Wangarian (@0xWangarian) April 21, 2022Fellow autarkic marketplace expert Michaël van de Poppe, however, fears that GMT's marketplace capitalization, which sits adjacent $1.9 cardinal — with a afloat diluted valuation of astir $18 cardinal — is an "absolute joke."
But GMT "valuations tin inactive go ridiculous," helium adds, owing to STEPN's selling tactics.
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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