The current market situation of the STEPN (GMT) rate is being analyzed as it is trading within a short-term channel. The market analysts are predicting a positive move in the price as it is expected to break out of the current pattern in a bullish manner.
In the last year, the STEPN (GMT) application based on Solana blockchain technology has emerged as the leader of the new trend called “move-to-earn” which financially motivates users to maintain a healthy lifestyle by rewarding them with cryptocurrency for physical activity. However, in order to participate in this program, users are required to purchase NFT sneakers.
Towards the end of the year, the trend’s popularity began to decline, but in January of this year, the GMT token’s value surged rapidly and reached its peak at $0.686 on January 26th, only to form a long upper wick (red icon) and decline afterwards. The technical analysis indicates that the price failed to breach the $0.59 horizontal resistance level, which was previously a support level in June 2022, and the bullish trend can only be confirmed once this level is breached.
Following the decline, GMT hit a low of $0.352 on February 25th, breaking through the important $0.415 area. Consequently, the token is now trading below two crucial resistance levels, with an immediate support level at $0.31. The daily RSI is also declining and has dropped below the 50 mark, suggesting that the most likely scenario for GMT is a decline to the $0.31 support level.
However, if the market manages to recover above the $0.415 resistance level, it could potentially push the token’s value to $0.59.
Source: TradingView
Although the outlook appears bearish on the daily chart, there are reasons for optimism when examining the 6-hour timeframe. Three signals support this stance.
To begin with, the GMT rate is currently trading within a descending parallel channel. This type of channel typically signifies corrective movements, and the price is presently situated near the upper part of the pattern, boosting the possibility of a potential bullish breakout.
In addition, the 6-hour RSI is providing bullish divergence signals, indicated by the green line. This type of divergence often foretells a bullish price breakout.
Lastly, the prior advance shows a five-wave bullish structure, indicated by the red wave. This structure is in perfect correlation with the channel’s existence.
Source: TradingView
As a result, it’s likely that STEPN will make a bullish breakout from the channel and progress towards $0.595. However, if the price drops below the median line of the channel, this forecast will be invalidated, and GMT could plummet to $0.31