STEPN rebounds sharply after falling 80% in a month — is GMT price bottoming out?
A massive downtrend in the STEPN (GMT) prices witnessed in the last 30 days appears to be nearing exhaustion.
GMT's price has rebounded by nearly 35%—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's 500% and 120% price rallies in March and early May, respectively.
Additionally, the rebound further preceded an 80% drop from its record high of $4.50, established on April 27, which left GMT oversold, per its daily relative strength index reading that slipped below the oversold threshold of 30 on May 26.
The technical support, in addition to oversold RSI, suggests GMT is in the process of bottoming out.
Drawing a Fibonacci retracement graph from GMT's $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 and the 0.786 Fib line (near $0.82) serving as interim support.
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 today's price. Moreover, a strong upside follow-up could send the STEPN token towards the $2-2.50 area, suggesting that the market has bottomed out.
Conversely, a weaker upside follow-up could have GMT's price retest $0.82 for a breakdown move toward $0.54. This level was instrumental in capping the token's downside attempts between March 17 and March 21 earlier this year.
From the fundamental perspective, GMT's bias looks skewed to the downside.
First, the token continues to trade in near-perfect tandem with Bitcoin (BTC) and the other top-cap cryptocurrencies, according to their daily correlation
Read more on cointelegraph.com
