A massive downtrend in the STEPN (GMT) prices witnessed in the last 30 days appears to be nearing exhaustion.<\/p>\n
GMT\u2019s price has rebounded by nearly 35%<\/a>\u00a0\u2014 from $0.80 on May 27 to $0.99 on May 28. Interestingly, the upside retracement started after the price fell in the same range, which had acted as support before GMT\u2019s 500% and 120% price rallies in March and early May, respectively.<\/p>\n Additionally, the rebound further preceded an 80% drop from its record high of $4.50, established on April 27, which left GMT oversold, according to its daily relative strength index reading that slipped below the oversold threshold of 30 on May 26.<\/p>\n The technical support, in addition to oversold RSI, suggests GMT is in the process of bottoming out.<\/p>\n Drawing a Fibonacci retracement graph from GMT\u2019s $0.0099-swing low to $3.82-swing high leaves the token inside a broader consolidation range, defined by the 0.382 Fib line near $1.50 acting as interim resistance, while the 0.786 Fib line near $0.82 serves as interim support.<\/p>\n Therefore, an extended rebound move from the $0.82-support level brings $1.50 into the attention as the next upside target, up about 40% from the price on May 28. Moreover, a strong upside follow-up could send the STEPN token toward the $2-2.50 area, suggesting that the market has bottomed out.<\/p>\n Conversely, a weaker upside follow-up could have GMT\u2019s price retest at $0.82 for a breakdown move toward $0.54.\u00a0This level was instrumental in capping the token\u2019s downside attempts between March 17 and March 21 earlier this year.<\/p>\n From the fundamental perspective, GMT\u2019s bias looks skewed to the downside.<\/p>\n First, the token continues to trade in near-perfect tandem with Bitcoin (BTC<\/a>) and the other top-cap cryptocurrencies, according to their daily correlation coefficient readings, which topped 0.98 on May 21 but had subsided to 0.75 on May 28.<\/p>\n So, if Bitcoin continues to struggle below $30,000<\/a>,\u00a0as many analysts believe, it could take GMT lower due to its consistent positive correlation with the token.<\/p>\n Second, GMT could drop due to the rising uncertainties surrounding STEPN\u2019s business model<\/a>, which involves paying users for exercising either by walking, jogging or running with the native Green Satoshi Token (GST) units.<\/p>\n Time to hit half a million followers milestone! We are giving away $1.5 million worth of NFT once we reach 500k Twitter followers (50 pairs BNBChain Genesis Sneakers): \u2014 STEPN | Public Beta Phase IV (@Stepnofficial) May 9, 2022<\/a><\/p><\/blockquote>\n Mike Fay, an independent market analyst and the author of the \u201cHeretic Speculator\u201d financial newsletter, says that STEPN\u2019s so-called move-to-earn model is neither scalable nor sustainable in the long term.<\/p>\n The analyst cited<\/a> some core issues with the \u201clifestyle app.\u201d<\/p>\n First, STEPN has a massive entry barrier, for it makes people acquire its expensive Sneaker NFTs. But, even then, people buy these digital issues for hundreds or thousands of dollars in anticipation that they would recover their investments by earning and selling GST tokens<\/a>.<\/p>\n Many users have already recouped their money, such as YouTuber Sebbyverse, who claims<\/a> that he earned $219 worth of GST tokens just by walking 15 minutes to-and-fro for dinner.\u00a0<\/p>\n![](\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/0d74f874-db64-4b98-ac6b-53af58dfce66.png\")
GMT price levels to watch<\/h2>\n
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STEPN a \u201chype-driven speculative frenzy?\u201d<\/h2>\n
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