YEREVAN (CoinChapter.com) – Sports app token STEPN (GMT) price jumped 30% in the previous 24 hours and traded at $0.63 on Jan 23. Moreover, technical indicators suggest it could double its value in the coming weeks. Here is why.
STEPN (GMT) broke out of a falling wedge
As the daily chart below indicates, GMT broke out of a technical setup known as the ‘falling wedge.’
The latter entails two converging trendlines that take an asset value incrementally lower while also reducing the price swing. Despite the price drop, the falling wedge is a bullish reversal pattern and forecasts an incoming bias shift once the underlying asset breaks above the setup’s resistance.
Moreover, according to the pattern, the current bullish jump would equal the maximal wedge height and pins the target price at approximately $1.27, i.e., 100% above the current value.
GMT price confirmed the falling wedge on Jan 8 and charted above the trendline, with two consecutive ascends within the previous two weeks. However, the question remains, will the token manage to double its price?
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At the time of writing, GMT arrived at a crucial resistance bar at $0.6-0.7. The bar has been influential since Mar 2022. So, STEPN bulls will have to double down if they hope to get the token over the said bar. If not, the next possible assistance might come from $0.53, the resistance in the last leg up.
Fundamentals neutral, despite NFT gaming revival
According to Delphi Digital, both NFTs and GameFi have been seeing a recovery of inflows. The STEPN app is part of play-to-earn gaming, so it could have caught the bullish drift. That’, in turn, could ensure a bullish continuation for GMT even if Bitcoin fails to provide the needed momentum.
However, the Delphi report also stated that most gamers don’t see crypto as “friendly” to the industry.
Parts of the traditional gaming industry have skewed towards aggressive monetization practices that are sometimes detrimental to the player’s experience.
statedthe report.
Meanwhile, the STEPN project did not have any fundamental news strong enough to push a double-digit rally, which confirms the recent jump was a rally-by-proxy, dependent on other events in the sector. The app team posted a Twitter thread with a short recap of the past month and hinted at updates coming “soon.”
However, the message did not contain exact dates.
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