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GMT at Risk as STEPN Network Activity Plummets

Analytics

cryptobriefing.com 15 July 2022 12:52, UTC
  
Reading time: ~2 m

Web3 “move-to-earn” app STEPN hasn’t registered any new users on its BNB chain version in the past three days while activity from existing users continues to decline.

STEPN at Risk of Steep Correction

STEPN’s GMT token appears primed for a significant price moment.

GMT currently trades 77% below its all-time high of $4.2o achieved in late April. The token briefly recovered over the past month after hitting a low of $0.53 on June 13. Still, STEPN appears to be locked in a stagnant period without providing a clear sign of where it’s heading next.

The 12-hour chart shows that GMT’s price action has formed an ascending triangle. The consolidation pattern anticipates that once STEPN breaches the $1.10 resistance or the $0.79 support level, a 50% price movement may follow. This target is derived from the height of the triangle’s Y-axis.

GMT/USDT 12-hour chart. (Source: TradingView)

Although technical indicators show indecision around GMT’s price, the on-chain activity looks quite pessimistic. The number of active players on the BNB chain version of the game has plummeted by nearly 96% in the last two months, and no new BNB players have joined in the past three days. A similar trend is also playing out on the app’s flagship version on Solana. After registering an all-time high of 104,149 users on May 26, there are now only 20,777 players as of July 14, representing an 80% drop in activity.

STEPN BNB chain active users. (Source: Dune Analytics)

While user activity shows STEPN is in decline, it is essential to wait for a decisive close of GMT’s price outside the $1.10 to $0.79 range before entering considering a long or short position. Only a sustained break out of this interest zone can help determine where GMT will go next. Until that happens, caution is advised.

Disclosure: At the time of writing, the author of this piece owned BTC and ETH.


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