The downward pressure on GMT is still there, as an expert described STEPN as a “hype-driven speculative frenzy.”
In the past 30 days, a massive decline in STEPN (GMT) prices appears to be reaching its end.
The price of GMT has risen by around 35%, from $0.80 on May 27 to $0.99 on May 28. The upward reversal occurred after the price fell to the same level that functioned as support before GMT’s 500 percent and 120 percent price increases in March and early May.
Furthermore, the recovery comes ahead of an 80% fall from its April 27 historic level of $4.50, which left GMT oversold, as per its daily relative strength index reading, which dropped below the oversold threshold of 30 on May 26.
GMT is in the process of bottoming out, relying on technical support and an oversold RSI.
GMT Price Levels To Watch
The 0.382 Fib line (near $1.50) behaves as interim opposition, while the 0.786 Fib line (near $0.82) performs as temporary support on a Fibonacci retracement graph from GMT’s $0.0099 swing low to $3.82 swing high leaves the token into a broader accumulation range, characterized by the 0.382 Fib line (near $1.50) acting as interim resistance and the 0.786 Fib line (near $0.82) starting to serve as a temporary support.
As a result, a strong comeback from the $0.82 support level puts $1.50 as the next upward target, indicating a 40% increase over today’s price. Additionally, a robust bullish follow-up might bring the STEPS token to $2-2.50, signaling that the market has bottomed out.
On the other hand, a weaker upside follow-up may see GMT’s price retest at $0.82 for a breakdown move toward $0.54. Earlier this year, between March 17 and March 21, this level was critical in halting the token’s declining trend.
STEPN A “Hype-Driven Speculative Frenzy?”
GMT’s bias seems to be tilted downward from a fundamental standpoint.
First, as per their regular correlation coefficient data, the token continues to trade in near-perfect tandem with Bitcoin (BTC) and the other top-cap cryptocurrencies, which soared at 0.98 on May 21 but dipped to 0.75 on May 28.
Due to its continuous positive correlation with the token, if Bitcoin continues to struggle below $30,000, as many experts predict, it may drag GMT under with it.
Second, due to the increasing ambiguity regarding STEPN’s business model, which includes compensating users for exercising by walking, jogging, or running with native Green Satoshi Token (GST) units, GMT could decrease.
STEPN’s so-called move-to-earn strategy, according to Mike Fay, an independent market expert and author of the Heretic Speculator financial newsletter, is neither scalable nor viable in the longer run.
According to the analyst, the “lifestyle app” has some massive shortcomings.
STEPN has a high entry bar because it requires consumers to purchase its pricey “Sneaker NFTs.” Even yet, consumers buy these digital issues for hundreds or thousands of dollars to recapture their investment by earning and selling GST tokens.
Many users have already recouped their cash, such as YouTuber Sebbyverse, who says to have received $219 in GST tokens simply by walking 15 minutes to and from dinner.
“When the app’s in-game payment token (GST-USD) crashes, the final people who come into the ecosystem essentially function as ‘exit liquidity’ for the early adopters,” Fay added, adding that the STEPN’s in-house token is already collapsing.
Users who paid thousands of dollars for Sneaker NFTs would have a smaller profit on investment due to this. According to Fay, if demand for NFTs dries up and incentive falls, STEPN would have difficulty drawing new users to its app, decreasing the need for GMT. He said, “
“STEPN is in the middle of a hype-fueled speculative frenzy, and I’m not becoming engaged. Not the GST-USD payout token, the GMT governance token, or the NFTs.”