- GMT, the token of STEPN move-to-earn app, stalled after a 50% rally in three days.
- The token risked to erase all the gains based on bearish technicals.
- FTX Japan featured STEPN, as the app registered gains in the previous month.
YEREVAN (CoinChapter.com) – Green Metaverse Token (GMT), the in-house coin of the move-to-earn app STEPN, caught the Bitcoin-led recovery wave in the previous three days.
The GMT/USD exchange rate jumped over 50% since May 29 and halted on Tuesday, trading at $1.2 ahead of the London session. However, the bullish bells rang hollow as the token eyed another 50% price drop.
In detail, the recent price advance seems to be a bull trap, a false recovery signal amid a bear market. As a result, the STEPN token formed a bear flag on the four-hour chart. The formation features two parallel trendlines that enclose the price action and take the value temporarily higher.
But the Bear Flag is a continuation pattern. Thus, it predicts another leg down once GMT exhausts the formation. Moreover, the STEPN token’s expected move would equal the flagpole, i.e., the latest drop preceding the setup. If the bearish scenario pans out, GMT holders could expect another 50% drop in the works to approximately $0.6.
Also read: STEPN, the move to earn sensation, is neither sustainable nor scalable — top analyst asserts
STEPN token met a confluence of resistance on May 31, from the Bear Flag formation’s upper margin and a down-sloping trendline, relevant since May 13. Moreover, the lowering trading volumes reaffirm the bearish expectations, as traders prefer to exit the market.
What’s new with STEPN?
STEPN app kicked off the weak by a feature on the Japanese division of crypto exchange FTX. The latter offered an invitation to join the app to the first 5,000 responders and STEPN sneakers NFTs to 10 lucky lottery winners.
To commemorate the official launch of FTX Japan, the first 5,000 people will receive a STEPN invitation code, and 10 people will be given a STEPN sneaker by lottery!commented FTX Japan.
Additionally, GMT boasted several bullish metrics on Twitter. For example, 3 million monthly active users, 800,000 daily active users, over $100 monthly revenue, and a daily net profit of $3-5 million.