An enormous downtrend within the STEPN (GMT) prices observed within the last thirty days seems to become nearing exhaustion.
GMT’s cost has rebounded by nearly 35%—from $.80 on May 27 to $.99 on May 28. Interestingly, the upside retracement began following the cost fell within the same range, which in fact had acted as support before GMT’s 500% and 120% cost rallies in March and early May, correspondingly.
Furthermore, the rebound further preceded an 80% drop from the record a lot of $4.50, established on April 27, which left GMT oversold, per its daily relative strength index studying that tucked underneath the oversold threshold of 30 on May 26.
The tech support team, additionally to oversold RSI, suggests GMT is while bottoming out.
GMT cost levels to look at
Drawing a Fibonacci retracement graph from GMT’s $.0099-swing low to $3.82-swing high leaves the token in the broader consolidation range, based on the .382 Fib line (near $1.50) serving as interim resistance and also the .786 Fib line (near $.82) becoming interim support.
Therefore, a long rebound change from the $.82-support level brings $1.50 in to the attention because the next upside target, up about 40% from today’s cost. Furthermore, a powerful upside follow-up could send the STEPN token for the $2-2.50 area, suggesting the market has bottomed out.
On the other hand, a less strong upside follow-up might have GMT’s cost retest $.82 for any breakdown move toward $.54. This level was instrumental in capping the token’s downside attempts between March 17 and March 21 captured.
STEPN a “hype-driven speculative craze?”
In the fundamental perspective, GMT’s bias looks skewed towards the downside.
First, the token is constantly on the exchange near-perfect tandem with Bitcoin (BTC) and yet another top-cap cryptocurrencies, based on their daily correlation coefficient readings, which capped .98 on May 21, but had subsided to .75 on May 28.
So, if Bitcoin is constantly on the struggle below $30,000, as numerous analysts believe, it might take GMT lower alongside because of its consistent positive correlation using the token.
Second, GMT could drop because of the rising uncertainties surrounding STEPN’s business design, that involves having to pay users for exercising either when walking, jogging, or running using the native Eco-friendly Satoshi Token (GST) units.
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Mike Fay, a completely independent market analyst and also the author from the Heretic Speculator financial e-newsletter, states that STEPN’s so-known as move-to-earn model is neither scalable nor sustainable within the lengthy term.
The analyst reported some core difficulties with the “lifestyle application.”
First, STEPN includes a massive entry barrier for this makes people acquire its costly “Sneaker NFTs.” But then, use these digital issues for hundreds or 1000s of dollars in anticipation they would recover their investments by earning and selling GST tokens.
Many users have previously recouped their cash, for example YouTuber Sebbyverse, who claims he earned $219 price of GST tokens simply by walking fifteen minutes to-and-fro for supper.
Related: People wish to be compensated crypto to workout within the Metaverse: Survey
“The way in which this likely ends is by using the final individuals who enter into the woking platform basically becoming ‘exit liquidity’ for that early adopters once the app’s in-game payment token (GST-USD) collapses,” Fay stated while highlighting the STEPN’s in-house token has already been crashing.
That will hurt users’ roi who compensated 1000s of dollars for Sneaker NFTs. So, when the interest in NFTs dries up and incentive drops, STEPN might have trouble attracting beginners to the application, thus dampening interest in GMT, based on Fay. He added:
“STEPN is within a hype-driven speculative craze and I am not touching any one of this. And not the payout token (GST-USD), the governance token GMT, or even the NFTs.”
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