The huge drop in STEPN (GMT) prices that has been witnessed for the last 30 days seems to be coming to an end.
GMT prices have risen by almost 35% – from $ 0.80 on May 27 to $ 0.99 on May 28. Interestingly, the rise began after prices fell in the same range, which had supported 500% and 120% GMT price increases in March and early May, respectively.
In addition, the rebound was further ahead of the 80% drop from its record high of $ 4.50, set on April 27, which led to the transfer of GMT, compared to the daily relative strength index, which fell below the 30-day high on May 26.
Technical support, as well as a surge in RSI, suggest that GMT is bottoming out.
GMT prices to monitor
Drawing a Fibonacci retracement graph from GMT’s $ 0.0099-swing low to $ 3.82-swing high separates the symbol within a broader range, defined by the 0.382 Fib line (close to $ 1.50) that acts as a temporary resistance and the 0.786 Fib line that serves as $ 0.88 (almost) $. temporary support.
As a result, an extended rebound from the $ 0.82 support level brings $ 1.50 attention next up, up 40% from today’s price. In addition, a strong upside follow-up could send the STEPN symbol towards the $ 2-2.50 range, indicating that the market has bottomed out.
On the other hand, a weaker upside follow-up could cause the GMT price test to be repeated $ 0.82 before a breakdown moves towards $ 0.54. This level played a major role in limiting the symbol’s downward attempts between March 17 and March 21 earlier this year.
STEPN “hype-driven speculation frenzy?”
From a fundamental point of view, the bias of GMT seems to be skewed.
First, the symbol continues to trade in near-perfect parallel to Bitcoin (BTC) and other top cryptocurrencies, according to their daily correlation coefficient, which exceeded 0.98 on 21 May but had fallen to 0.75 on 28 May.
So, if Bitcoin continues to fight below $ 30,000, as many analysts believe, it could take GMT lower in parallel due to a stable positive correlation with the symbol.
Second, GMT could fall due to growing uncertainty surrounding STEPN’s business model, which involves paying users to exercise either by walking, jogging or running with the Native Green Satoshi Token (GST) modules.
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Mike Fay, an independent marketer and author of the Heretic Speculator financial newsletter, says that STEPN’s move-to-earn model is neither scalable nor sustainable in the long run.
The expert cited several core issues with the “lifestyle app”.
First, STEPN has a huge entry barrier because it allows people to acquire expensive “NFTs sneakers.” But even then, people buy these digital versions for hundreds or thousands of dollars in anticipation of recouping their investment by earning and selling GST tokens.
Many users have already refunded their money, such as YouTuber Sebbyverse, who claims to have earned $ 219 worth of GST tokens by walking 15 minutes to and from dinner.
Related: People want to get paid cryptography for practicing in the Metaverse survey
“The way this is likely to end is with the last people entering the site actually serving as ‘exit funds’ for first-time users when the app’s payment gateway (GST-USD) crashes,” Fay said, emphasizing that STEPN’s internal key is already collapsing.
That would hurt the return on investment of users who paid thousands of dollars for Sneaker NFTs. So if the demand for NFTs diminishes and the incentive decreases, STEPN would have trouble attracting new players to its app, thus reducing the demand for GMT, according to Fay. He added:
“STEPN is in a hype-driven speculative madness and I’m not touching any of this. Not the payout symbol (GST-USD), the GMT or NFTs governing symbol.”
The views and opinions expressed herein are those of the authors only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading business involves risk, you should conduct your own research when making a decision.
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