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STEPN to reach new heights? The GMT price has painted the first ‘bull flag’ toward the $5 target

Published by
Nonhlanhla P Dube

GMT is thriving, despite concerns that its 38,000 percent price increase since inception may be an “absolute joke.”
STEPN (GMT) has risen sharply against the US dollar this week, and it appears to be forming a classic bullish technical pattern known as “the bull flag.” 

STEPN (GMT) has risen sharply against the US dollar this week, and it appears to be forming a classic bullish technical pattern known as “the bull flag.” 
GMT’s price has risen 30% week to date, with a powerful advance to an all-time high at $3.85 (R60.20) followed by a very modest pullback to near $3.00 (R46.91). The correction phase, in particular, happened within a descending parallel channel, enhancing the possibility that the market would finally break out to the upside.

This is due to the fact that traditional analysts regard big run-ups followed by range-trapped market declines as bullish continuation setups. And, as said before, the one GMT has been painting a bull flag, which could lead to an upside boom in the next weeks.

In general, traders choose a bull flag target by measuring the height of the previous uptrend and projecting it from the breakout point. Using the standard setup on GMT’s chart, it now sees a run-up above $5.00 ( R78.18), which is around 65 percent higher than the current price.

According to Thomas Bulkowski, a senior investor and analyst, the success record of bull flags in attaining their upside targets is close to 64%.

However, the probability of a collapse toward $2.00 (R31.27) increases if the GMT price breaks below the lower trendline of the bull flag, the last line of support, which corresponds with the 50-days with 4-hour periods exponential moving average (EMA), the red wave at $2.91( R45.50).

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

GMT increased by about 38,000 percent in less than two months, thanks to the excitement surrounding STEPN’s “move-to-earn” economic model, which rewards app users with a local currency called Green Satoshi Token (GST) for simply moving.

STEPN makes income — it made $26.81 million (R 419m) in Q1/2022 — by the sale of its so-called “NFT Sneaker” — a one-of-a-kind digital picture that allows players to earn GST in the first place. The proceeds are used to acquire and then burn GMT, putting upward pressure on its values if demand for the token rises.

Wangarian, an independent market analyst, believes the hype surrounding STEPN is similar to what occurred in May 2021 for Axie Infinity (AXS), a play-to-earn gaming metaverse. Between May and November of last year, AXS/USD rose from roughly $2.50 (R 39.09) to around $178( R 2 783).
However, Michaal van de Poppe, an independent market analyst, believes GMT’s market capitalisation, which is near $1.9 billion( R28 bn) — with a fully diluted valuation of roughly $18 billion( R281 bn) — is a “absolute joke.”

GMT, however, “values can still get ludicrous,” he adds, due to STEPN’s marketing techniques.

Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at nonhlanhla@rateweb.co.za

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Published by
Nonhlanhla P Dube

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