STEPN (GMT) has rallied strongly against the U.S. dollar this week as it looks likely to form a classical bullish technical pattern called the "bull flag."
GMT's price rose 30% week-to-date, including a strong rally to establish an all-time high near $3.85 followed by a relatively modest correction to nearly $3. In particular, the correction phase occurred inside a descending parallel channel, raising possibilities that the price would eventually break out of it to the upside.
That is precisely because traditional analysts consider strong run-ups, followed by range-trapped price corrections, as bullish continuation setups. And the one GMT has been painting — a bull flag, as mentioned above — could lead to an upside boom in the weeks ahead, as shown in the chart below.
As a general rule, traders realize a bull flag target by measuring the previous uptrend's height and projecting it from the breakout point. Applying the classic setup on GMT's chart shows that it now eyes a run-up above $5, about 65% above today's price.
Bull flags' success rate of meeting their upside targets sits near 64%, according to Thomas Bulkowski, a veteran investor and analyst.
But the risk of a drop toward $2 becomes high if the GMT's price breaks below the bull flag's lower trendline, the last line of support, which coincides with the 50-4H exponential moving average (50-4H EMA; the red wave) at $2.91.
GMT surged by nearly 38,000% in less than two months, amid the hype surrounding STEPN's "move-to-earn" economic model that rewards its app's users with a native currency, called Green Satoshi Token (GST), for merely moving.
STEPN generates revenues (it made $26.81 million in Q1/2022) via the sales of its so-called "NFT Sneaker" — a unique digital image
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