STEPN (GMT) recorded impressive rallies this week and seemed to create a bullish technical setup known as the ‘bull flag.’
GMT Ready for More Surges
GMT had its price gaining 30% WTD (week-to-data), including a massive upsurge to form an ATH around $3.85 before a slight retracement towards the $3 level. Meanwhile, the retracement phase happened within a descending channel, highlighting the potential of breakouts to the upside.
Traditional market catalysts consider massive upward actions accompanied by range-trapped retracements as bullish continuation patterns. Meanwhile, GMT has painted a bull flag. As highlighted before, this setup may trigger massive upside actions in the coming weeks.
As a rule of the game, analysts detect bull flag targets by determining the past upsurge’s height and adding the result from the breakout level. Applying the classical formation on STEPN’s chart shows GMT eyeing an upside move past $5, translating to a nearly 65% beyond the current price.
A veteran analyst and investors, Thomas Bulkowski, believe Bull flags boast a 65% success rate.
Meanwhile, GMT breaking beneath the bull flag’s bottom boundary increases the risk of plunges towards the $2 level. The flag’s lower trend-line stands as the final defense line and matches the 50 4hr Exponential Moving Average at $2.91.
GMT’s 38,000% Upsurge
GMT saw a staggering 38,000% surge within two months. The monstrous rally emerged amid hypes surrounding the crypto’s move-to-ear model that rewards app users with the native currency – Green Satoshi Token – for moving the assets.
STEPN generates revenue (it recorded around $26.81 million in 2022 Q1) by selling its NFT Sneaker, a distinctive digital image. Users with the non-fungible token can earn GST as a reward. The game utilizes the approach of buying then burning GMT, driving the price higher amid increased demand.
Wangarian, an independent market expert, trusts the GMT hype resembles that of Axie Infinity, a P2E gaming metaverse launched in May 2021. AXS surged from $2.50 to $178 from May to November last year.
On the other hand, a renowned market expert, Michael van Poppe, fears that STEPN’s market cap of $1.9B, with a $19 billion diluted valuation, is a joke.