STEPN (GMT) has performed well against the US Dollar this week. It looks like a classical bullish technical pattern, called a “bull flag”, might be forming.
The price of the project’s native token, GMT, surged by almost 38,000% in less than two months. This rapid price increase happened at a time when STEPN’s announcement that it will shift to a “move-to-earn” economic model attracted a fair amount of attention.
According to an independent market analyst, Wangarian, the hype around STEPN displays a trend similar to what Axie Infinity (AXS) witnessed back in May of last year. AXS has rallied from around $2.50 to about $178 between May and November in 2021.
Looking at the short-term performance of the project, the price of GMT rose by roughly 30% week-to-date. This price upswing included a price increase that saw the coin set a new all-time-high near $3.85. Its rally to an all-time-high was however met with a small correction shortly after, taking the price back down to near $3.
One thing to note is that the price correction happened inside what is known as a descending parallel channel. This opens up the possibility of the price positively breaking out of the channel in the short term.
According to another veteran analyst and investor, Thomas Bulkowski, the success rate of bull flags is more or less 64%.
However, should the price of GMT break below the bull flag’s lower trendline, then we would see GMT’s price drop closer to $2 per coin.
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Source: Cryptocurrency - investing.com
