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STEPN recovers rapidly after an 80% fall in a month

The downside pressure on GMT remains, as an analyst describes STEPN as a “hype-driven speculative frenzy.”
A massive downtrend in STEPN (GMT) prices over the last 30 days appears to be nearing its end. GMT’s price has nearly tripled, rising from $0.80(R12.85) on May 27 to $0.99(R15.41) on May 28. Surprisingly, the price retracement began after the price fell in the same range that had served as support prior to GMT’s 500% and 1200% price rallies in March and early May, respectively.

Furthermore, the rebound came before an 80% drop from its record high of $4.50(R70.05) on April 27, which left GMT oversold, according to its daily relative strength index reading, which fell below the oversold threshold of 30 on May 26.

As a result, an extended rebound move from the $0.82(R12.76)-support level brings $1.50(R23.35) into focus as the next upside target, up roughly 40% from the price on May 28. Furthermore, a strong uptrend could send the STEPN token to the $2-2.50(R31.13- R38.92) range, indicating that the market has bottomed out.

In the event of a weaker upside follow-up, GMT’s price could retest at $0.82(R12.76) before breaking down and moving toward $0.54(R8.41). This level was critical in limiting the token’s downside attempts earlier this year between March 17 and March 21.

STEPN a “speculative frenzy fueled by hype?”

GMT’s fundamental bias appears to be skewed to the downside.

First, according to their daily correlation coefficient readings, the token continues to trade in near-perfect tandem with Bitcoin (BTC) and the other top-cap cryptocurrencies, peaking at 0.98 on May 21 but falling to 0.75 on May 28.

GMT is in the process of bottoming out, according to technical support and oversold RSI.

GMT price levels to keep an eye on

Drawing a Fibonacci retracement graph from GMT’s $0.0099(R0.15) swing low to $3.82(R59.46) swing high places the token within a larger consolidation range, with the 0.382 Fib line near $1.50(R23.35)acting as interim resistance and the 0.786 Fib line near $0.82(R12.76) acting as interim support. As a result, if Bitcoin remains below $30,000(R467K), as many analysts believe, GMT may fall due to its consistent positive correlation with the token.

Second, GMT may fall as a result of the growing uncertainty surrounding STEPN’s business model, which involves paying users for exercising by walking, jogging, or running with native Green Satoshi Token (GST) units.

According to Mike Fay, an independent market analyst and the author of the financial newsletter “Heretic Speculator,” STEPN’s so-called move-to-earn model is neither scalable nor sustainable in the long run.

The analyst raised several concerns about the “lifestyle app.”

STEPN has a high entry barrier for starters because it requires people to purchase its expensive Sneaker NFTs. Even so, people buy these digital issues for hundreds or thousands of dollars in the hope of recouping their investment by earning and selling GST tokens.

Many users have already redeemed their money, including YouTuber Sebbyverse, who claims to have earned $219(R3409) in GST tokens simply by walking 15 minutes to and from dinner.

“The way this is likely to end is with the last people who come into the platform essentially serving as’exit liquidity’ for the early adopters when the app’s in-game payment token collapses,” Fay said, pointing out that the STEPN’s in-house token is already collapsing.

This would reduce users’ return on investment after spending thousands of dollars on Sneaker NFTs. According to Fay, if demand for NFTs dries up and incentives fall, STEPN will struggle to attract new players to its app, dampening demand for GMT. He continued:

“STEPN is in a hype-driven speculative frenzy, and I’m not getting involved.” Not the GST-USD payout token, the GMT governance token, or the NFTs.”

STEPN recovers rapidly after an 80% fall in a month

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 [email protected]

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