A large downtrend within the STEPN (GMT) costs witnessed within the final 30 days seems to be nearing exhaustion.

GMT’s price has rebounded by practically 35%—from $0.80 on Might 27 to $0.99 on Might 28. Apparently, the upside retracement began after the value fell in the identical vary, which had acted as assist earlier than GMT’s 500% and 120% value rallies in March and early Might, respectively.

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GMT/USD every day value chart. Supply: TradingView

Moreover, the rebound additional preceded an 80% drop from its document excessive of $4.50, established on April 27, which left GMT oversold, per its every day relative power index studying that slipped beneath the oversold threshold of 30 on Might 26.

The technical assist, along with oversold RSI, suggests GMT is within the technique of bottoming out.

GMT value ranges to look at

Drawing a Fibonacci retracement graph from GMT’s $0.0099-swing low to $3.82-swing excessive leaves the token inside a broader consolidation vary, outlined by the 0.382 Fib line (close to $1.50) appearing as interim resistance and the 0.786 Fib line (close to $0.82) serving as interim assist.

GMT/USD every day value chart that includes Fib assist/resistance ranges. Supply: TradingView

Due to this fact, an prolonged rebound transfer from the $0.82-support stage brings $1.50 into the eye as the following upside goal, up about 40% from in the present day’s value. Furthermore, a powerful upside follow-up might ship the STEPN token in the direction of the $2-2.50 space, suggesting that the market has bottomed out.

Conversely, a weaker upside follow-up might have GMT’s value retest $0.82 for a breakdown transfer towards $0.54. This stage was instrumental in capping the token’s draw back makes an attempt between March 17 and March 21 earlier this 12 months.

STEPN a “hype-driven speculative frenzy?”

From the elemental perspective, GMT’s bias seems skewed to the draw back.

First, the token continues to commerce in near-perfect tandem with Bitcoin (BTC) and the opposite top-cap cryptocurrencies, in line with their every day correlation coefficient readings, which topped 0.98 on Might 21, however had subsided to 0.75 on Might 28.

GMT/USD and BTC/USD every day correlation coefficient. Supply: TradingView

So, if Bitcoin continues to struggle below $30,000, as many analysts consider, it might take GMT decrease alongside as a consequence of its constant constructive correlation with the token.

Second, GMT might drop because of the rising uncertainties surrounding STEPN’s business model, which entails paying customers for exercising both by strolling, jogging, or working with the native Inexperienced Satoshi Token (GST) models.

Mike Fay, an unbiased market analyst and the creator of the Heretic Speculator monetary e-newsletter, says that STEPN’s so-called move-to-earn mannequin is neither scalable nor sustainable in the long run.

The analyst cited some core points with the “way of life app.”

First, STEPN has a large entry barrier for it makes folks purchase its costly “Sneaker NFTs.” However even then, folks purchase these digital points for lots of or hundreds of {dollars} in anticipation that they’d get better their investments by incomes and selling GST tokens.

Many customers have already recouped their cash, akin to YouTuber Sebbyverse, who claims that he earned $219 price of GST tokens simply by strolling quarter-hour to-and-fro for dinner. 

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“The best way this possible ends is with the final individuals who come into the platform basically serving as ‘exit liquidity’ for the early adopters when the app’s in-game fee token (GST-USD) collapses,” Fay stated whereas highlighting that the STEPN’s in-house token is already crashing. 

GST/USD every day value chart. Supply: TradingView

That may harm customers’ return on funding who paid hundreds of {dollars} for Sneaker NFTs. So, if the demand for NFTs dries up and incentive drops, STEPN would have bother attracting new gamers to its app, thus dampening demand for GMT, in line with Fay. He added:

“STEPN is in a hype-driven speculative frenzy and I am not touching any of this. Not the payout token (GST-USD), the governance token GMT, or the NFTs.”

The views and opinions expressed listed below are solely these of the creator and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer entails danger, it’s best to conduct your personal analysis when making a choice.