STEPN (GMT) has rallied strongly in opposition to the U.S. greenback this week because it appears to be like prone to type a classical bullish technical sample referred to as the “bull flag.”

GMT eyes extra upside

GMT’s value rose 30% week-to-date, together with a powerful rally to ascertain an all-time excessive close to $3.85 adopted by a comparatively modest correction to almost $3. Particularly, the correction section occurred inside a descending parallel channel, elevating prospects that the worth would finally escape of it to the upside.

That’s exactly as a result of conventional analysts take into account sturdy run-ups, adopted by range-trapped value corrections, as bullish continuation setups. And the one GMT has been portray — a bull flag, as talked about above — may result in an upside growth within the weeks forward, as proven within the chart beneath.

GMT/USD 4-hour value chart that includes ‘bull flag’ setup. Supply: TradingView

As a common rule, merchants understand a bull flag goal by measuring the earlier uptrend’s peak and projecting it from the breakout level. Making use of the traditional setup on GMT’s chart reveals that it now eyes a run-up above $5, about 65% above immediately’s value.

Bull flags’ success fee of assembly their upside targets sits close to 64%, according to Thomas Bulkowski, a veteran investor and analyst.

However the threat of a drop towards $2 turns into excessive if the GMT’s value breaks beneath the bull flag’s decrease trendline, the final line of assist, which coincides with the 50-4H exponential shifting common (50-4H EMA; the crimson wave) at $2.91.

STEPN’s 38,000% positive aspects ‘an absolute joke’? 

GMT surged by nearly 38,000% in lower than two months, amid the hype surrounding STEPN’s “move-to-earn” financial mannequin that rewards its app’s customers with a local foreign money, referred to as Inexperienced Satoshi Token (GST), for merely shifting.

STEPN generates revenues (it made $26.81 million in Q1/2022) through the gross sales of its so-called “NFT Sneaker” — a novel digital picture whose possession allows gamers to earn GST within the first place. The sport makes use of the proceeds first to purchase after which burn GMT, thus creating upward strain on its costs if the demand for the token goes up.

Impartial market analyst Wangarian believes the hype round STEPN appears to be like much like what Axie Infinity (AXS), a play-to-earn gaming metaverse, witnessed in Might 2021. AXS/USD rallied from round $2.50 to about $178 between Might and November final yr.

Fellow unbiased market analyst Michaël van de Poppe, nonetheless, fears that GMT’s market capitalization, which sits close to $1.9 billion — with a totally diluted valuation of round $18 billion — is an “absolute joke.”

However GMT “valuations can nonetheless change into ridiculous,” he provides, owing to STEPN’s advertising and marketing techniques.

The views and opinions expressed listed below are solely these of the writer and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer entails threat, it is best to conduct your individual analysis when making a choice.