STEPN move-to-earn tokens GMT, GST hit new highs after Coinbase listing announcement – Vijay Gir
November 16, 2024
Analysis

STEPN move-to-earn tokens GMT, GST hit new highs after Coinbase listing announcement

Crypto Live India

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The native tokens of move-to-earn lifestyle app STEPN swung higher on news that they would be available to trade on Coinbase, a U.S.-based crypto exchange.

The price of STEPN’s governance token Green Metaverse Token (GMT) rallied by nearly 20% to reach over $4 in the past 24 hours, hitting as high as $4.50, its best level to date.

GMT/USD four-hour price chart. Source: TradingView

Similarly, the other STEPN token, called the Green Satoshi Token (GST), which players earn after walking, jogging and running outdoors with STEPN’s “NFT Sneakers,” gained 6.5% to about $6.25 on a 24-hour adjusted timeframe with a new record high of $7.20. 

STEPN ecosystem grows

The intraday rallies in GMT and GST markets are part of a broader uptrend that started in early March 2022. The growing hype around the so-called move-to-earn industry is boosting the value of these tokens, which are rewarded to active players.

In particular, STEPN’s economic model, which involves selling nonfungible token (NFT) shoes and using the proceeds to buy back and burn GMT tokens, likely attracted speculators that see a lower supply-higher demand structure as bullish. GMT comes with a supply cap of 6 billion.

Meanwhile, GST, which comes with an unlimited supply cap, finds bullish cues from its underlying use-cases.

Notably, STEPN players use the token to mint, repair and level up their NFT sneakers — or even sell them on the app’s marketplace. As a result, if the number of STEPN users increases, it could lead to players limiting GST’s downside prospects by using it as an in-game currency.

Players have already been sharing screenshots of their STEPN profiles, which feature their physical activities and the GST rewards they earned for doing them. Meanwhile, leading NFT marketplace OpenSea has added STEPN’s sneakers collection, providing more avenues for STEPN NFT owners to resell their digital shoes. 

The hype for move-to-earn tokens appears similar play-to-earn projects such as Axie Infinity (AXS), which skyrocketed last year. 

GMT ascending triangle

GMT’s price eyes a return to $4.50 ahead of this week’s close, based on the “ascending triangle” setup on its shorter-timeframe charts, as shown below.

GMT/USD hourly price chart featuring ‘ascending triangle’ setup. Source: TradingView

Ascending triangles appear when the price consolidates between a horizontal upper trendline and a rising lower trendline. They resolve after the price breaks out in the direction of its previous trend, and rise by as much as the maximum distance between the triangle’s upper and lower trendline.

Related: STEPN to new highs? GMT price painting first ‘bull flag’ toward $5 target

Interestingly, the triangle’s upside target near $4.50 also coincides with the 1.618 Fib line of the Fibonacci retracement graph drawn from $3.82-swing high to $2.75-swing low. 

GST descending triangle

Unlike GMT, GST is showing signs of breakdown as it forms a descending triangle pattern after topping out at $7.20.

GST’s price has been trending lower between a falling upper trendline and a horizontal lower trendline, which is considered bearish reversal after a strong uptrend. That said, the STEPN token now risks breaking below the triangle’s lower trendline, as illustrated below.

GST/USD hourly price chart featuring ‘descending triangle’ setup. Source: TradingView

If this occurs, GST’s price will risk falling by as much as the triangle’s maximum height when measured from the breakdown point, resulting in the bearish target of $6.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.