StepN’s GMT price soars: Can these gains be sustained?

StepN’s Green Metaverse Token (GMT) experienced a notable surge in price, with a dramatic 50% increase on Friday, reaching an intraday high of $0.2275, its highest level since December 9. This rally made GMT one of the best-performing cryptocurrencies of the day. The surge coincided with a broader market rebound, with Bitcoin and several altcoins like Virtuals Protocol, Fartcoin, Hyperliquid, and Raydium all experiencing double-digit gains. However, it’s important to note that there was no direct news or announcement that triggered this surge, leaving analysts to speculate about the underlying factors driving the price movement.

One likely contributor to the rise in GMT’s price was an increase in StepN’s user base. The number of active users surged to 97, marking its highest level since December 30. While this is still considerably lower than the peak number of users last month, the increase in users might have helped boost confidence in the platform and its token, leading to a rise in demand for GMT.

Another potential factor behind the price surge is StepN’s expanded partnership with Adidas, the globally recognized sportswear company. The two companies announced the release of 1,200 limited-edition sneakers that would be available exclusively to NFT holders. This collaboration could have further stimulated interest in StepN’s ecosystem, as limited-edition items often attract a lot of attention in the NFT and cryptocurrency communities.

Market conditions also played a role in the surge. The price increase happened during the holiday season when market liquidity is typically lower. During these periods, it is not uncommon for cryptocurrencies with lower trading volumes to experience more volatility or price manipulation. In the case of GMT, this may have made it easier for traders to drive the price up with relatively small trades.

South Korean traders seem to have been particularly influential in GMT’s rally. Data from CoinMarketCap showed that most of GMT’s trading volume came from Upbit, a South Korean exchange, which handled over $311 million in GMT volume on Friday. This accounted for a significant 25% of the total market share. Other exchanges like Binance and Bybit also saw substantial volume, with $219 million and $27 million traded, respectively.

StepN has been one of the more innovative projects in the cryptocurrency space, introducing the “move-to-earn” concept. Users of the platform can purchase sneaker NFTs and earn rewards for walking, jogging, or running, integrating fitness with financial incentives. However, like many similar “to earn” projects, StepN’s initial success was short-lived, and user engagement has dropped considerably since its peak. The recent surge in GMT’s price, despite the overall decrease in usage, suggests that there might still be speculative interest in the token, though it remains to be seen if this will translate into sustained growth.

From a technical analysis standpoint, GMT’s recent price action is noteworthy. The daily chart reveals that GMT formed a “God candle” on Friday, surging to $0.2275. This surge occurred after the token found strong support along an ascending trendline that has connected the lowest price swings since August of last year. It is not uncommon for assets to experience parabolic price movements after reaching a critical support level. Additionally, GMT’s price surpassed the 23.6% Fibonacci Retracement level and the 50-day moving average, both of which are significant technical indicators.

However, while these gains may appear impressive, they might be short-lived. There was no major catalyst or news that led to this rebound, which suggests that the rally could be temporary. If the momentum fades, GMT may retest stronger support levels, with the $0.15 mark standing out as a critical pivot reverse level. If the price does indeed retrace to this level, it would likely serve as a significant test for the token’s long-term stability. Traders and investors should remain cautious, as without further bullish developments, the recent surge may simply be a short-term spike rather than the beginning of a sustained upward trend.