STEPN (GMT) has rallied strongly in opposition to the US Greenback this week as it’s more likely to type a traditional bullish technical sample referred to as the “Bull Flag”.
GMT appears to be like extra up
GMT value is up 30% for weeks together with a powerful rally to hit an all-time excessive close to $3.85 adopted by a comparatively modest correction near $3. Notably, the corrective part came about inside a descending parallel channel, elevating the chance that the value would finally escape to the upside.
That is exactly as a result of conventional analysts see sharp rises adopted by value corrections within the vary as bullish continuation setups. And the one GMT that GMT has painted – a bull flag as talked about above – may result in an upward growth within the coming weeks as illustrated within the chart beneath.
GMT/USD 4 hour value chart with Bull Flag setup. Supply: TradingView
Usually, merchants establish a bull flag goal by measuring the peak of the earlier uptrend and projecting it from the breakout level. Making use of the traditional setup to the GMT chart exhibits that it’s now anticipating a surge above $5, some 65% above immediately’s value.
The success price of bull flags in hitting their upside targets is almost 64%, in keeping with Thomas Bulkowski, a veteran investor and analyst.
However the danger of a drop in direction of $2 will turn into excessive if GMT value breaks beneath the bull flag decrease trendline, the final assist line related to the 50-4 hourly exponential transferring common (50-4 hourly EMA; the crimson wave) coincides at $2.91.
STEPN’s 38,000% earnings are “an absolute joke”?
GMT is up almost 38,000% in lower than two months amid hype surrounding STEPN’s “move-to-earn” financial mannequin, which rewards customers of its app with a local forex referred to as the Inexperienced Satoshi Token (GST) for simply spending transfer.
STEPN generates income ($26.81 million in Q1 2022) by means of the sale of its so-called “NFT sneaker” — a novel digital picture owned by which allows gamers to earn GST within the first place. The sport makes use of the proceeds to first purchase after which burn GMT, placing upward stress on its costs as demand for the token will increase.
Impartial market analyst Wangarian believes the hype surrounding STEPN is just like what Axie Infinity (AXS), a play-to-earn gaming metaverse, skilled in Might 2021. AXS/USD rallied from round $2.50 to round $178 between Might and November of final yr.
Inform me ripping $APE + $GMT in a sideways market in Might 2021 does not look just like $AXS.
— Wangarian (@0xWangarian) April 21, 2022
Nonetheless, unbiased market analyst Michaël van de Poppe worries that GMT’s market cap, which stands at round $1.9 billion — at a totally diluted valuation of round $18 billion — is an “absolute joke.”
However GMT “evaluations can nonetheless get ridiculous,” he provides, as a consequence of STEPN’s advertising techniques.
The views and opinions expressed herein are solely these of the writer and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer entails danger, it is best to do your individual analysis when making a call.