STEPN to new highs? GMT price painting first ‘bull flag’ toward $5 target

STEPN (GMT) has rallied strongly in opposition to the U.S. greenback this week because it appears more likely to kind a classical bullish technical sample known as the “bull flag.”

GMT eyes extra upside

GMT’s value rose 30% week-to-date, together with a robust rally to determine an all-time excessive close to $3.85 adopted by a comparatively modest correction to almost $3. Particularly, the correction section occurred inside a descending parallel channel, elevating prospects that the worth would ultimately escape of it to the upside.

That’s exactly as a result of conventional analysts think about robust run-ups, adopted by range-trapped value corrections, as bullish continuation setups. And the one GMT has been portray — a bull flag, as talked about above — might result in an upside increase within the weeks forward, as proven within the chart under.

GMT/USD 4-hour value chart that includes ‘bull flag’ setup. Supply: TradingView

As a basic rule, merchants understand a bull flag goal by measuring the earlier uptrend’s peak and projecting it from the breakout level. Making use of the basic setup on GMT’s chart reveals that it now eyes a run-up above $5, about 65% above at this time’s value.

Bull flags’ success charge of assembly their upside targets sits close to 64%, in keeping with Thomas Bulkowski, a veteran investor and analyst.

However the threat of a drop towards $2 turns into excessive if the GMT’s value breaks under the bull flag’s decrease trendline, the final line of help, which coincides with the 50-4H exponential transferring common (50-4H EMA; the crimson wave) at $2.91.

STEPN’s 38,000% positive aspects ‘an absolute joke’? 

GMT surged by almost 38,000% in lower than two months, amid the hype surrounding STEPN’s “move-to-earn” financial mannequin that rewards its app’s customers with a local foreign money, known as Inexperienced Satoshi Token (GST), for merely transferring.

STEPN generates revenues (it made $26.81 million in Q1/2022) through the gross sales of its so-called “NFT Sneaker” — a novel digital picture whose possession permits gamers to earn GST within the first place. The sport makes use of the proceeds first to purchase after which burn GMT, thus creating upward stress on its costs if the demand for the token goes up.

Unbiased market analyst Wangarian believes the hype round STEPN appears just like what Axie Infinity (AXS), a play-to-earn gaming metaverse, witnessed in Might 2021. AXS/USD rallied from round $2.50 to about $178 between Might and November final yr.

Fellow unbiased market analyst Michaël van de Poppe, nonetheless, fears that GMT’s market capitalization, which sits close to $1.9 billion — with a completely diluted valuation of round $18 billion — is an “absolute joke.”

However GMT “valuations can nonetheless grow to be ridiculous,” he provides, owing to STEPN’s advertising techniques.

The views and opinions expressed listed below are solely these of the writer and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer entails threat, you must conduct your personal analysis when making a call.