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


The steep fall in STEPN (GMT) prices seen over the past 30 days is nearing an end.

GMT the price has moved up about 35% – from $0.80 on May 27 to $0.99 on May 28. Interestingly, the price started an upward retracement after falling in the same range that acted as support prior to the 500% and 120% price rally on GMT. March and early May respectively.

GMT/USD daily price chart. Source: TradingView

Additionally, the rally left GMT oversold, before falling 80% from its record high of $4.50 set on April 27, according to its daily Relative Strength Index reading, which slipped below the oversold threshold of 30 on May 26.

Technical Support, in addition to the oversold RSI, suggests that GMT is in the process of bottoming out.

GMT price level to watch

Drawing a Fibonacci retracement graph from GMT’s $0.0099-swing low to $3.82-swing high leaves the token inside a broad consolidation range, defined by the 0.382 Fib line (near $1.50) that acts as interim resistance. and 0.786 acts as the Fib line (near $0.82). interim support.

GMT/USD daily price chart featuring Fib support/resistance levels. Source: TradingView

Therefore, an extended rally above the $0.82-support level brings to mind $1.50 as the next upside target, which is approximately 40% higher than today’s price. Furthermore, a strong upside follow-up could send STEPN token towards the $2-2.50 area, indicating that the market is bottoming out.

Conversely, a weak upside following GMT could cause the price to move towards $0.54 for a breakdown of $0.82. This level was instrumental in preventing the coin’s downside attempts between March 17 and March 21 earlier this year.

STEPN A “Hype-Driven Speculative Frenzy?”

From a fundamental point of view, the GMT bias looks to be on a downside slant.

Firstly, the token continues to trade in near perfect sync with bitcoin (BTC) and other top-cap cryptocurrencies, according to their daily correlation coefficient readings, which were above 0.98 on 21 May, but as low as 0.75 on 28 May. happened.

GMT/USD and BTC/USD daily correlation coefficients. Source: TradingView

Therefore, if Bitcoin continues to struggle below $30,000, as many analysts believe, it could turn GMT lower due to its continued positive correlation with the coin.

Second, GMT could fall due to growing uncertainties around STEPN’s business model, which involves paying users to walk, jog or walk with native Green Satoshi Token (GST) units.

Mike Fay, an independent market analyst and author of the Heuristic Speculator financial newsletter, says that STEPN’s so-called move-to-earn model is neither scalable nor sustainable over the long term.

The analyst cited a few main issues with the “lifestyle app.”


First, STEPN has a huge entry barrier, allowing people to access its expensive “sneaker NFTs”. But still, people buy these digital issues for hundreds or even thousands of dollars in the hope that they will recover their investment by earning and selling GST tokens.

Several users have already replenished their money, such as YouTuber Sebbyverse, who claims he earned $219 worth of GST tokens just by walking 15 minutes to dinner.

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“The way this possibility ends is with the end ones essentially acting as ‘exit liquidity’ for early adopters when the app’s in-game payment token (GST-USD) collapses.” It is,” Fay said, highlighting that Steppen’s in-house token is already crashing.

GST/USD daily price chart. Source: TradingView

This sneaker would hurt the return on investment of users paying thousands of dollars for NFTs. So, if demand for NFTs drops and incentives drop, STEPN will have trouble attracting new players to its app, thus reducing GMT demand, according to Fay. He added:

“STEPN is in a hype-driven speculative frenzy and I am not touching any of it. Payout Token (GST-USD), Governance Token not GMT or NFT.”

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, so you should do your own research when making a decision.